Boston Real Estate for Sale

Homeownership remains cheaper than renting in majority of U.S.

by Emily Mack January 07, 2022

homeownership still more affordable than renting.jpg

Although home prices skyrocketed last year — more than 10% in most of the country — low interest rates have continued to facilitate homeownership. Combined with rising wages, homeownership remains a cheaper option than renting in the majority of areas, according to a new study by ATTOM Data Solutions. ATTOM came to the same conclusion in 2021.

The real estate data firm tracked three key features across 1,154 U.S. counties: 2022 fair market rent data estimates, single-family home public record sales deed data and wage data. Among those counties, the costs of rent outweighed the costs of owning a median-priced home in 58%.

These results may come as a surprise to those following the real estate market. Over the past year, limited housing inventory, heightened by the ongoing COVID-19 pandemic, drove prices up and up. But wages also rose 8% on average and interest rates have hovered around 3%. “Home-prices are rising faster than both rents and wages while wages rise faster than rents. And the housing market boom of the past decade keeps pushing home values to new records,” said Todd Teta, the chief product officer with ATTOM. “Yet home ownership still remains the more affordable option for average workers in a majority of the country because it still takes up a smaller portion of their pay.”

In general, however, patterns are trending in favor of renters. According to Teta, this “could be a major force in easing price increases in 2022. Prices can only go up by so much more before renting becomes financially easier.” During 2021, wage growth outpaced rent growth in the majority of markets. As such, renting is the cheaper option in 21 of the country’s 25 most populous counties. This includes major metropolitan areas like Chicago, Los Angeles and Phoenix. The most affordable rental markets are in the South and the Midwest.

In turn, owning is most affordable in less-populated places — though Houston’s Harris County stands as one notable exception. Like rents, the most-affordable home ownership markets are also in the South and the Midwest.

Loading...

Renting Versus Buying A Back Bay Condo

Pride in Owning Bay Bay condo: 

Most people buy Back Bay condo for sale to have control over where they live. Although investment features are important, the psychological reasons for buying— the satisfaction of owning and freedom from paying rent—are at least as important.

In a survey done by the National Association of REALTORS® of 6,000 homeowners and 2,000 renders—perhaps the largest survey ever of attitudes toward home ownership—it was shown that 76% of owners and 66% of renters considered pride of ownership an important reason for buying.

Dislike Paying Rent:

Close to 7 in 10 of almost equal portions of owners and renters expresses a dislike of paying rent as an important reason to buy. Renting offers a lifestyle that’s nearly maintenance-free. That may appeal to you, but consider that renting offers you no equity, no tax benefit, and no protection against regular rent increases. Writing a rent check is just like watching your hard-earned money sail away!

Settling Down: 

More than 6 in 10 renters said “settling down” was an important reason to buy.

Good Investment: 

76% of owners and 69% of renters said that the investment aspect of ownership was important.

Tax Advantages:

Property taxes and qualified home interests are deductible on Schedule A, for itemized deductions.

Long Term Appreciation:

People consider homeownership a good investment because they view it as a long-term venture. Historically, home prices have risen at relatively steady rates. Existing home prices rose an average of 4% per year between 1980 and 1992.

Leverage Investment:

People borrow a great deal to buy homes, yet they receive the full benefits of price appreciation. In the long run, investments in homes far outpace inflation rates.

Source of Savings:

Homeownership always has been and continues to comprise the single largest source of savings for American households. Homeowners build equity and can borrow against it.

Sacrifices are worth it:

Almost 7 in 10 renters in the National Association of REALTORS® homeownership survey said that they planned to buy a home in the future. More than three-quarters of these people said they were willing to sacrifice to do that.

Back Bay condos for Sale


Sorry we are experiencing system issues. Please try again.

Click here: Back Bay luxury condos for sale and sales data


Sorry we are experiencing system issues. Please try again.

Loading...

Back Bay condos for sale in 2020

Click Here: Back to Boston Real Estate Home Search

Ford Realty – Boston Real Estate Google Reviews 2019

Boston condos for sale for 2020

Back Bay condos for sale 2020

Beacon Hill condos for sale

Charlestown condos for sale under $1M for 2020

Boston downtown condos for sale for 2020

Boston Downtown real estate

Boston High rise condos for sale

Boston Midtown condos for sale 2020

Boston North End condos for sale 2020

Seaport Condos for sale 2020

Boston Apartments for rent

 
Call Now