Buying a Home is More Affordable Than Renting in 66% of US Counties

According to ATTOM Data Solutions’ 2017 Rental Affordability Report, buying a home is more
affordable than renting in 354 of the 540 U.S. counties they analyzed.

The report found that “making monthly house payments on a
median-priced home — including mortgage, property taxes and insurance — is more
affordable than the fair market rent on a three-bedroom property in 354 of the
540 counties analyzed in the report (66 percent).”

For the report, ATTOM Data Solutions compared recently
released fair market rent data from the Department of Housing and Urban
Development with reported income amounts from the Department
of Labor and Statistics to determine the percentage of income that a
family would have to spend on their monthly housing cost (rent or mortgage
payments).

Rents have been surging faster than home prices in about 37% of the markets
measured. Daren Blomquist, Senior Vice President of ATTOM Data
Solutions warns that rising interest rates could be the tipping point
of affordability:

“While
buying continues to be more affordable than renting in the majority of U.S.
markets, that equation could change quickly if mortgage rates keep rising in
2017. In that scenario, renters who have not yet made the leap to homeownership
will find it even more difficult to make that leap this year.”

Bottom Line

Rents will continue to rise and mortgage interest rates are still at
historic lows. Before you sign or renew your next lease, meet with a local
professional who can help you determine if you are able to buy a home of your
own and lock in your monthly housing expense.