Despite a record jump in home prices, it is still cheaper to own than rent, according to Redfin’s inaugural rent-versus-own analysis…(Redfin)
- HOME PRICES were up big as the national median monthly mortgage payment for homebuyers rose 67% year-over-year.
- RENTS had a slow start in the first half of the year but still ended up with a nationwide average increase of 9% over the past year in August.
VERY IMPORTANT NOTE: So I’m sure this means for the first time in a while it may make more sense to rent than buy? Actually, no. Redfin reports that nationwide, the average monthly rent of $1,836 is still larger than the $1,494 median monthly mortgage payment for new homebuyers.
A place where it makes the least sense to rent is Flordia. The state had the top five metro areas with the fastest rising rent…
- Tampa saw the biggest jump with a 29.2% jump year-over-year followed by West Palm Beach, Miami, and Fort Lauderdale were all up 28.9%. Coming in at number five was Jacksonville with a 26.8% jump.
Despite a national rental market that is up almost double digits, some rental markets actually saw a drop.
- Rents in Pittsburgh, PA fell 5% followed by San Jose, CA (-2.9%) and then St. Louis, MO (-0.5%)
Redfin Lead Economist Taylor Marr notes that families getting priced out of the housing market is putting upward pressure on rents…
- “Record high home price growth has priced many renters out of buying, leaving many facing higher rents this summer as more households look to move thanks to the rise of remote and flexible work arrangements”