Analysis Finds Owning a Home 70% More Costly Than Renting
Recent analysis by the real-estate technology platform Cadre reveals that for many Americans, renting might be the more economical choice given the skyrocketing costs of homeownership. With mortgage rates surpassing 7% and home prices at an all-time high, combined with fierce competition due to limited home listings, potential buyers are finding homeownership increasingly out of reach.
A comparison of owning versus renting costs shows the most significant disparity since 2000, with it being approximately 70% more expensive to buy a home than to rent as of August 2023.
Key Highlights:
- Mortgage rates are over 7%, and home prices are elevated.
- In July 2023, it was 62% more expensive to buy than rent.
- Cadre’s analysis indicates a 70% cost difference between owning and renting in August 2023, the widest gap since 2000.
- The median home price in the U.S. in July stood at $406,700.
- Median rent in August was $2,052, while the estimated median monthly mortgage payment was $2,632 in September.
Cadre’s data sources include CoStar Group, the St. Louis Fed, and Zillow, ensuring a comprehensive overview of the current real estate landscape.
Read more at MarketWatch.com.
HFO Investment Real Estate specializes in multifamily brokerage sales and advisory services for commercial real estate investors and apartment owners throughout Oregon and Washington. Build your legacy at http://www.hfore.com