Thinking about renting versus buying?
It’s now more expensive than ever to pay a mortgage versus renting.
According to the Wall Street Journalciting a CBRE analysis, higher interest rates and home prices are contributing to the inequity. The report showed that a buyer taking out a 30-year mortgage on an average priced home at $430,000 with a 10% down payment would pay about $3,200 a month, before other costs such as maintenance and taxes.
The cost of a mortgage exceeds the cost of renting to the largest degree since 1996, WSJ said.
After heated pricing during the pandemic, rent prices are leveling off. Rent fell for the first time in six months in September, with the national median rental price now at $2,011, according to Rent.com. That's a 2% difference, or about $40 less than the median rental price for August. It’s now at the lowest median rental price since April of 2023.
“I’m seeing it’s slowing a bit on the rental side,” said Max Stokes, a real estate agent at Compass Real Estate in New Jersey who handles sales and rentals. “Landlords have already pushed it as far as they could.”
Why is it more expensive than ever to buy a home in US?
In 30 states across the country, more than 30% of household income is spent on housing. Why is it so difficult to buy a house now?
Gauging the economy and inflation, Stokes said landlords have flattened price increases. Rent prices are held down by below-normal demand, more inventory and high prices at this time last year, the Rent.com report said.
Rent prices are up nationally year over year by 0.4%, which is an $8 monthly increase.
