Renting rates increase, making buying more affordable. According to RealtyTrac, investing in a house is more affordable than renting in most major counties. RealtyTrac’s Buy-to-Rent analysis revealed that 66 percent of U.S. counties have better home affordability than rent.
The analysis considered median incomes of 285 counties in the U.S. and how much is needed to pay fair-market rent for a three-bedroom apartment; the analysis then compared it to the amount that would be needed for monthly mortgage payments, property taxes, and insurance for a purchased property, noted Mortgage Daily News. The results indicated that 29.96% of household income was needed to pay for rent, while only 29% was necessary to buy a home. Three-bedroom rental rates jumped 3% on a year-over-year basis for all 285 major counties included in the report, while in 2014, the year-over-year change was only 1%.
Some counties where buying is more affordable than renting. There are a number of regions where, on average, rent is notably more expensive than buying a home. Some of these include:
- San Bernardino County, California
- Clark County, Nevada
- Miami-Dade County, Florida
- Wayne County, Michigan
- Broward County, Florida
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