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Buying a Home is More Affordable Than Renting in 66% of US Counties

Buying a Home is More Affordable Than Renting in 66% of US Counties

According to ATTOM Data Solutions’ 2017 Rental Affordability Report, buying a home is more affordable than renting in 354 of the 540 U.S. counties they analyzed.

The report found that “making monthly house payments on a median-priced home — including mortgage, property taxes and insurance — is more affordable than the fair market rent on a three-bedroom property in 354 of the 540 counties analyzed in the report (66 percent).”

For the report, ATTOM Data Solutions compared recently released fair market rent data from the Department of Housing and Urban Development with reported income amounts from the Department of Labor and Statistics to determine the percentage of income that a family would have to spend on their monthly housing cost (rent or mortgage payments).

Rents have been surging faster than home prices in about 37% of the markets measured. Daren Blomquist, Senior Vice President of ATTOM Data Solutions warns that rising interest rates could be the tipping point of affordability:

“While buying continues to be more affordable than renting in the majority of U.S. markets, that equation could change quickly if mortgage rates keep rising in 2017. In that scenario, renters who have not yet made the leap to homeownership will find it even more difficult to make that leap this year.”

Bottom Line

Rents will continue to rise and mortgage interest rates are still at historic lows. Before you sign or renew your next lease, meet with a local professional who can help you determine if you are able to buy a home of your own and lock in your monthly housing expense.


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3 replies
  1. Burt Silver
    Burt Silver says:

    This is really interesting information! My wife and I have been renting for a while now. We want to buy a home so we can have somewhere to raise a family, but we have been worried about the cost. 354 out of 540 counties is really impressive, maybe it would be cheaper for us to buy after all! I will have to look into it.

    Reply
    • Rich McKee
      Rich McKee says:

      Burt… very smart to pursue. Especially considering the equity you build as well. KCM has also recently posted an article expressing the value of home ownership and being one of the primary retirement investments.
      Rich McKee

      Reply
    • Sara May
      Sara May says:

      Hi Burt, Often times a mortgage payment is significantly less than rental or lease payments. And not to mention you are building equity so if you do decide to sell or upgrade later in life you can recoup the money you have paid towards your mortgage:) What market are you looking to buy in?

      Reply

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