Tuesday, September 26, 2023

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.

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