Buying a home is more affordable than renting one in 66
percent of housing markets in the U.S., with Cook County, Ill.,
Maricopa County, Ariz. and Miami-Dade County, Fla. among those with the
highest buy affordability, according to ATTOM Data Solutions' 2017
Rental Affordability Report. Renting a home, to compare, is more
affordable than buying one in 34 percent of markets, with Dallas
County, Texas, Kings County, N.Y. and Santa Clara County, Calif. among
those with the highest rent affordability.
Predominantly impacting affordability are stagnant wages, which have
lagged at a growth rate of 2.2 percent since one year ago, compared to
home prices, up 5.7 percent, and rents, up 4.2 percent.
Rising mortgage rates could deal another blow to affordability. Average
rates, which retreated since charging forward following the
election, are currently above 4 percent.
Home price growth outpaced wage growth in 79 percent of the counties
analyzed in the report, while rent growth outpaced wage growth in 62
percent. Wage growth, however, outpaced home price growth in 21 percent
of the counties analyzed, and outpaced rent growth in 38 percent.
A monthly house payment on a median-priced home will require 36.6
percent of average wages, according to the report; a monthly fair
market rent will require 38.6 percent.
|
No comments:
Post a Comment