7 Housing Markets Where Buying Is Gaining Ground Over Renting
In all of the 50 largest U.S. metros, renting a starter home is more affordable than buying one, a recent Realtor.com report found. However, the report identified seven real estate markets where buying could soon make more financial sense. In these areas, starter-home listing prices are declining faster than rents, and average weekly earnings are growing at or above the 3.8% national rate.
Although renting remains the cheaper option today, the affordability gap is narrowing in these major markets.
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“Improving buying conditions do not make the decision to purchase automatic, especially when renting is still cheaper,” Jiayi Xu, economist at Realtor.com, said in a press release. “These conditions do give renters more flexibility and confidence when making that decision. Households can continue to save while renting, or, if they are ready to buy, pursue a market where home prices, rents and earnings are increasingly working in their favor.”
Here's a look at the major metros where buying conditions are improving.
1. Oklahoma City
Median asking rent: $915
Year-over-year change in median asking rent: -1.5%
Year-over-year change in median listing price: -9%
Year-over-year change in average weekly earnings: 4.1%
2. Orlando-Kissimmee-Sanford, Florida
Median asking rent: $1,682
Year-over-year change in median asking rent: -1.6%
Year-over-year change in median listing price: -7.7%
Year-over-year change in average weekly earnings: 3.8%
3. Seattle-Tacoma-Bellevue, Washington
Median asking rent: $1,890
Year-over-year change in median asking rent: -1%
Year-over-year change in median listing price: -5.9%
Year-over-year change in average weekly earnings: 4%
4. Miami-Fort Lauderdale-West Palm Beach, Florida
Median asking rent: $2,279
Year-over-year change in median asking rent: -1.3%
Year-over-year change in median listing price: -5%
Year-over-year change in average weekly earnings: 5.7%
5. Tampa-St. Petersburg-Clearwater, Florida
Median asking rent: $1,635
Year-over-year change in median asking rent: -4.9%
Year-over-year change in median listing price: -7.1%
Year-over-year change in average weekly earnings: 4.8%
6. Las Vegas-Henderson-North Las Vegas, Nevada
Median asking rent: $1,457
Year-over-year change in median asking rent: -1.8%
Year-over-year change in median listing price: -3.4%
Year-over-year change in average weekly earnings: 4.4%
7. Nashville-Davidson–Murfreesboro–Franklin, Tennessee
Median asking rent: $1,488
Year-over-year change in median asking rent: -3.9%
Year-over-year change in median listing price: -5.4%
Year-over-year change in average weekly earnings: 3.9%
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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