Mortgage payments versus monthly rent

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The median monthly home rental price is $ 1,607, which translates to 9.8% annual growth, which makes renting about 15.5% more expensive than monthly mortgage payments for a start-up home in about half of America’s 50 largest cities, according to data. Monthly rental report from Realtor.com. In the country as a whole, compared to 2019, rental prices for two-bedroom apartments have increased in double digits, and studio rents have reached a two-year high. Experts say the unknown direction of the telecommuting trend could be driving rents higher in certain areas.

“In July this year, rents reached a new high in 40 of the 50 largest metros in the United States and grew at the fastest pace in 18 months,” said the chief economist at Realtor.com. Daniel Hale… “Sky-high rents and historically low interest rates have meant that the monthly costs of buying a new home for a new build are lower than renting one in nearly half of the markets in the US. other factors to consider when deciding whether to become a homeowner, including making sure that now is the right time for you and your family. But if monthly costs are holding you back, the data shows that it is worth exploring in many markets, and while it is still difficult to find entry-level homes, we see more smaller homes entering the market… “

Many of the highest rental incomes in July were in secondary markets, where rental demand surged during COVID, thanks in part to telecommuting allowing employees to escape crowded, expensive big cities – at least temporarily, Hale explains, adding. With a future distant for many an uncertain job, homebuyers for the first time saw less excitement than tenants in some of July’s most expensive rental markets.

Of course, the lease or purchase situation differs significantly from metropolis to city – top markets where first-time home buyers saw lower monthly payments than tenants included Birmingham, Alabama; St. Louis, Missouri; and Pittsburgh, where rents averaged $ 300-400 higher than mortgage payments for a new home.

Cities known for their tech start-ups or expansions, such as Austin, San Jose, California; San Francisco; Seattle; Boston; and in New York, however, start-up home mortgage payments exceeded monthly rent – in Austin – by nearly 80%.

“New technology centers such as Austin In recent years, there has been an increase in demand for housing, as more Silicon Valley companies open or expand offices in these areas. Relocating employees, including many millennials, can lead to much larger increases in housing costs, with rental costs about half that of the United States. San Francisco and San Jose and the starting house is more than a third lower. Growth is expected to continue into Austin, there is a surcharge on real estate, but California “Transplants may find that relative affordability creates opportunities for first-time home buying,” Hale said.

Realtor.com has provided a list of the top 10 buying markets and the top 10 for rentals. The full report is available on the website Realtor.com

Realtor.com Rentals data July 2021 – Top 10 Markets Preferring to Buy over Rent

Classify

underground

% Expenses
Difference
(Purchase-rent)

Cost $
Difference
(Purchase-rent)

Median
Rent

Monthly
Buy
Expenses

Rent
YoY

Buy
Expenses
YoY

1

Birmingham Hoover, Alabama.

-33.1%

– 361 USD

USD 1,089

USD 728

12.3%

28.2%

2

St. Louis, Missouri, Illinois.

-29.4%

– 340 USD

USD 1155

USD 815

7.4%

13.7%

3

Pittsburgh, Pennsylvania.

-27.7%

– 381 USD

USD 1,376

USD 995

8.3%

18.9%

4

Orlando-Kissimmee-Sanford, Florida.

-25.9%

– 403 USD

USD 1,557

USD 1,154

16.2%

4.5%

5

Cleveland-Elyria, Ohio

-25.7%

– 280 USD

USD 1,089

USD 809

6.8%

2.4%

6

Tampa-St. Petersburg-Clearwater, Florida.

-22.9%

– $ 389

USD 1,698

USD 1309

27.2%

15.1%

7

Baltimore-Columbia-Towson, Maryland.

-20.5%

– $ 337

USD 1,647

USD 1310

6.8%

7.8%

eight

Indianapolis-Carmel-Anderson, Indiana

-20.4%

– 235 USD

USD 1150

USD 915

13.5%

4.9%

nine

Virginia Beach Norfolk Newport News, Virginia, North Carolina

-19.2%

– USD 256

USD 1330

USD 1,074

11.9%

3.1%

ten

Riverside-San Bernardino-Ontario, California.

-18.5%

– 413 USD

USD 2,230

USD 1817

29.7%

17.7%

Realtor.com Rental data for July 2021 – Top 10 Markets Preferring Rent to Purchase

Classify

underground

% Expenses
Difference
(Purchase-rent)

Cost $
Difference
(Purchase-rent)

Median
Rent

Monthly
Buy
Expenses

Rent
YoY

Buy
Expenses

YoY

1

Austin Round Rock, TX

79.2%

USD 1228

USD 1,550

USD 2,778

14.8%

17.2%

2

San Jose Sunnyvale Santa Clara, California.

47.5%

USD 1,396

USD 2,936

USD 4332

1.4%

4.8%

3

San Francisco-Oakland Hayward, California.

44.4%

USD 1,272

USD 2,865

USD 4137

-2.9%

-5.7%

4

Seattle-Tacoma-Bellevue, Washington.

44.2%

USD 872

USD 1,975

USD 2,847

5.6%

3.1%

5

Boston – Cambridge – Newton, Massachusetts – New Hampshire

40.9%

USD 1,001

USD 2,450

USD 3,451

-3.7%

6.1%

6

Los Angeles-Long Beach-Anaheim, California.

39.4%

USD 1,081

USD 2,742

USD 3,823

6.7%

9.5%

7

New York-Newark-Jersey City, New York-New Jersey-Pa.

32.0%

USD 773

USD 2418

USD 3191

-6.1%

5.6%

eight

Dallas-Fort Worth-Arlington, TX

26.9%

USD 382

USD 1,420

USD 1,802

13.6%

-0.6%

nine

Rochester, NY

26.5%

USD 321

USD 1 210

USD 1,531

9.5%

-8.0%

ten

Portland-Vancouver-Hillsboro, Oregon-Washington.

26.4%

USD 443

USD 1,675

USD 2118

11.7%

14.1%



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