{"id":11001,"date":"2024-03-09T03:54:27","date_gmt":"2024-03-09T03:54:27","guid":{"rendered":"https:\/\/imsfund.com\/?p=11001"},"modified":"2024-03-09T03:54:27","modified_gmt":"2024-03-09T03:54:27","slug":"every-major-u-s-city-where-its-more-expensive-to-rent-than-buy","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2024\/03\/09\/every-major-u-s-city-where-its-more-expensive-to-rent-than-buy\/","title":{"rendered":"Every Major U.S. City Where It&#8217;s More Expensive to Rent Than Buy"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\">\n<button x-on:click=\"open = !open\" class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/svg><\/p>\n<p class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">In this article<\/p>\n<p><\/button><\/p>\n<\/section>\n<p><span data-preserver-spaces=\"true\">It\u2019s no secret that high interest rates and a low supply of homes for sale have pushed prices up, grounding the housing market to a near halt. Conversely, the rental market has thawed considerably after scorching-hot rent rises in 2021 and 2022.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Consider these data points. According to the National Association of Realtors,\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nar.realtor\/newsroom\/existing-home-sales-rose-3-1-in-january\" target=\"_blank\" rel=\"nofollow noopener\"><span data-preserver-spaces=\"true\">months of supply for existing homes sits at just 3.0<\/span><\/a><span data-preserver-spaces=\"true\">, down from 4.6 at the beginning of the pandemic. The S&amp;P CoreLogic Case-Shiller Home Price Indicies hit an all-time in December. And the average 30-year mortgage interest rate has been hovering around 7%.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">However, according to\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.zumper.com\/blog\/rental-price-data\/\" target=\"_blank\" rel=\"nofollow noopener\"><span data-preserver-spaces=\"true\">Zumper\u2019s year-over-year data<\/span><\/a><span data-preserver-spaces=\"true\">, rent growth has stalled. Two-bedroom rent growth has fallen to just slightly above 0%, and one-bedroom rent growth has turned negative.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">With the two markets diverging, this leaves potential buyers with a simple question: Where are mortgage payments less expensive than renting?<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">BiggerPockets crunched the data to provide the answer for cost-conscious dwellers. Using Zillow\u2019s metro area January data for both home prices and rent, we assumed a 7% interest rate to calculate a monthly mortgage payment to compare to rent in the 50 largest metro areas in the United States.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">But, the mortgage payment is largely dependent on the down payment. According to the National Association of Realtors, the average down payment for\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nar.realtor\/magazine\/real-estate-news\/first-time-home-buyers-are-vanishing-from-the-market\" target=\"_blank\" rel=\"nofollow noopener\"><span data-preserver-spaces=\"true\">first-time buyers is 6%<\/span><\/a><span data-preserver-spaces=\"true\">, while it\u2019s 17% for repeat buyers. This makes intuitive sense, as repeat buyers have likely built up equity in their existing homes, particularly those who bought in the lower interest-rate environment.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The two maps show where it\u2019s more expensive to buy (blue dots) and more expensive to rent (red dots) for both first-time buyers and repeat buyers. The size of the dot represents how much more expensive it is for the given scenario in that metro area.<\/span><\/p>\n<p>Use these as good indicators of what it takes to enter a market and how easy it is to cash flow when you\u2019re there. Note that in markets where it\u2019s cheaper to buy than rent, you\u2019re more likely to cash flow.<\/p>\n<h2 class=\"wp-block-heading\">Mapping the Markets<\/h2>\n<p><iframe title=\"17 Percent Down: More Expensive To Rent Or Buy?\" aria-label=\"Map\" id=\"datawrapper-chart-437oZ\" src=\"https:\/\/datawrapper.dwcdn.net\/437oZ\/1\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"498\" data-external=\"1\"><\/iframe><\/p>\n<p><iframe title=\"6 Percent Down: More Expensive To Rent Or Buy?\" aria-label=\"Map\" id=\"datawrapper-chart-bpLS1\" src=\"https:\/\/datawrapper.dwcdn.net\/bpLS1\/1\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"498\" data-external=\"1\"><\/iframe><\/p>\n<p><iframe title=\"Rent And Mortgages With Different Down Payments\" aria-label=\"Table\" id=\"datawrapper-chart-NqKQZ\" src=\"https:\/\/datawrapper.dwcdn.net\/NqKQZ\/1\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"937\" data-external=\"1\"><\/iframe><\/p>\n<p class=\"italic\"><b>Note By BiggerPockets:<\/b> These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.biggerpockets.com\/blog\/every-city-where-its-cheaper-to-buy-a-home-than-rent\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this article It\u2019s no secret that high interest rates and a low supply of homes for sale have pushed prices up, grounding the housing market to a near halt. Conversely, the rental market has thawed considerably after scorching-hot rent rises in 2021 and 2022. Consider these data points. According to the National Association of [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":11002,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/pittsburgh-1024x517.jpg","fifu_image_alt":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-11001","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/11001","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/comments?post=11001"}],"version-history":[{"count":1,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/11001\/revisions"}],"predecessor-version":[{"id":11003,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/11001\/revisions\/11003"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media\/11002"}],"wp:attachment":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media?parent=11001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/categories?post=11001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/tags?post=11001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}