Due to increasing mortgage rates and decreasing rents, it is more affordable to rent rather than buy a starter home in all 50 of the largest metropolitan areas in the country, as reported by new data from Realtor.com published on Monday. new data from Realtor.com published Monday.
In February, rental prices for apartments and small homes dropped for the seventh consecutive time, with rents decreasing by around 0.4 percent compared to a year earlier. Meanwhile, the prices for buying starter homes rose, averaging $1,000, or 60 percent, higher than rents.
The difference was most noticeable in the fastest-growing cities in the country. It was more than double the cost to buy a starter home compared to renting in Austin and Seattle, and nearly twice as much in Phoenix and San Francisco.
In the Austin area, the average rent is $1,530, while buying a similar home would cost about $3,695 per month, given the average mortgage rates. Rents in Austin dropped significantly by 4.4 percent last year, making it one of the fastest rates of decline among major cities as its housing market flourishes.
Compared to 2023, the difference increased the most in Los Angeles, Nashville, Phoenix, Memphis, and Raleigh, N.C. In Richmond, Va., renters are saving $700 more than a year ago compared to buyers.
Mortgage rates have risen to nearly 7 percent in some parts of the country as high Federal Reserve interest rates remain steady. risen to nearly 7 percent Due to rising mortgage rates and falling rents, it’s cheaper to rent than buy a starter home in every one of the country’s 50 largest metropolitan areas, according to new data from Realtor.com published Monday. February marked the seventh consecutive decline in rental prices for apartments and small homes, with rents falling by about 0.4 percent compared…
