Buying A Home Still Cheaper Than Renting

A recent analysis of home prices and rent in more than 500 U.S. counties found that buying a home was cheaper than renting in the majority of housing markets across the country. In fact, according to data released by RealtyTrac, buying a median-priced home was more affordable, compared to rent on a three-bedroom property, in 68 percent of the analyzed counties. However, a deeper look inside the numbers shows that, in most of the markets with the biggest increase of young buyers, buying was actually equal to or more expensive than renting. And because first-time buyers are a key demographic – and one likely to be debating the pros and cons of homeownership – this presents a potential concern. Daren Blomquist, vice president of RealtyTrac, said in today’s housing market many of the markets with the jobs and amenities younger buyers want have hard-to-afford rents and even harder-to-afford home prices, while the more affordable markets have fewer well-paying jobs and tend to be off the beaten path. Still, expected pent-up demand among first-time buyers is expected to boost home sales numbers in 2015 and help accelerate the pace of the housing market’s overall recovery. More here.

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