RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Map: Where It’s Better to Buy Instead of Rent in 2020

Home Latest News
By Suzanne De Vita
January 15, 2020
Reading Time: 2 mins read
2
Map: Where It’s Better to Buy Instead of Rent in 2020

Thomasville, Georgia, USA – July 3, 2009: Small two story brick home with porch and a garage on the side containing plenty of copy space,

It’s a crucial question, especially for first-time homebuyers: Should I buy a home, or rent one?

As is the case in real estate, it comes down to location.

In 53 percent of the country’s housing markets, you’re better off buying than renting, according to ATTOM Data Solutions’ 2020 Rental Affordability Report, newly released. For the report, ATTOM compared 855 counties, and assumed a median-priced, three-bedroom home and a median-priced, three-bedroom rental, based on government statistics. In 66.3 percent of counties, the growth in home prices surpassed wages, the report shows. In 57 percent of counties, earnings growth outpaced rents.

Of course, despite the overall trend, there’s nuances and patterns. Generally speaking, in dense metropolitan regions, it’s cheaper to rent. If an area’s less populated, it’s better to buy.

There are exceptions, however. In Chicago, Los Angeles and San Diego, home to millions, the cost of homeownership outweighs renting—but in Detroit, Miami and Philadelphia, which also have million-plus populations, buying is less pricey than renting.

Here’s a map of the markets in the report, and where they fall on the spectrum.

“Homeownership is a better deal than renting for the average wage earner in a slim majority of U.S. housing markets; however, there are distinct differences between different places, depending on the size and location from core metro areas,” says Todd Teta, chief product officer with ATTOM Data Solutions. “For sure, either buying or renting is a financial stretch or out of reach for individual wage earners throughout most of the country in the current climate—but with interest rates falling, owning a home can still be the more affordable option, even as prices keep rising.”

Affordability improved recently, reports show. According to the National Association of REALTORS®, in the third quarter of 2019, the average monthly mortgage payment shrank to $1,033, or 15.6 percent of a household’s income—a departure from 17.4 percent the previous year. According to Freddie Mac, the average 30-year, fixed mortgage rate is 3.64 percent, considerably down from 4.45 percent last year.

Meanwhile, on an annual basis, home prices remain on the upswing, escalating 3.3 percent in October, the Case-Shiller/CoreLogic index reported.

Suzanne De Vita is RISMedia’s senior online editor. Email her your real estate news ideas at sdevita@rismedia.com.

Tags: ATTOM Data SolutionsHome PricesHousing AffordabilityHousing MarketReal Estate Market
ShareTweetShare

Suzanne De Vita

Related Posts

Thriving in a Recession: Best Practices for Real Estate Team Leaders
Agents

Thriving in a Recession: Best Practices for Real Estate Team Leaders

August 16, 2022
Agents Believe Teams Are Key to Remaining in the Industry: Survey
Agents

Agents Believe Teams Are Key to Remaining in the Industry: Survey

August 16, 2022
Report: Wells Fargo Plans to Shrink Mortgage Business
Agents

Report: Wells Fargo Plans to Shrink Mortgage Business

August 16, 2022
RISMedia’s Newsmakers: Shining a Light on the Industry’s Iconic Leaders
Agents

RISMedia’s Newsmakers: Shining a Light on the Industry’s Iconic Leaders

August 16, 2022
How Does a Broker’s Price Opinion in Real Estate Work?
Agents

How Does a Broker’s Price Opinion in Real Estate Work?

August 16, 2022
Innovator or Imitator: A Deep Dive Into What Makes Compass Tick
Agents

Innovator or Imitator: A Deep Dive Into What Makes Compass Tick

August 15, 2022

Comments 2

  1. Linda Mac says:
    2 years ago

    I’m confused by the map. Your article indicates it’s cheaper to own than rent in Chicago but that’s not indicated on the map.  Thanks for all the useful information tho. I’m deciding what to do! 

    Reply
  2. D says:
    2 years ago

    Thank you for this information! We are trying to buy our first home because renting is so expensive we have had to live with parents for years now. But owning a house our monthly bill would be hundreds less than our rent, and we would be building our equity instead of some millionaires portfolio.
    Frustrating right now every available house in town under 200k has sold to an investment company. A week later we see it for rent for double the mortgage payment. 
    The media keeps saying millennials love renting, that’s a giant lie! We are being forced to rent, how can we compete for a house when we make 30k a year for f’s sake?! America now home of the, only the rich derseve houses and ‘gee I wonder why less children are being born’. No first time houses (aka less than 1500 sq ft) no families.
     

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

Building With Purpose: Lessons From a Real Estate Power Couple

The Andersons, Alisha and Paul, started their team in Mesa, Arizona, in 2018 and have already risen to the Top... Read more.

Business Tip of the Day provided by
REGISTER NOW

Recent Posts

  • Thriving in a Recession: Best Practices for Real Estate Team Leaders
  • Agents Believe Teams Are Key to Remaining in the Industry: Survey
  • Report: Wells Fargo Plans to Shrink Mortgage Business

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

X