Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
721,576-14142
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
6.97%0.01
Affordable HousingEconomicsFed PolicyHousing MarketMortgageMortgage RatesReal Estate

Renting is much cheaper than owning in these housing markets

Study by John Burns Research & Consulting shows that renting in Austin, TX will save a household $1,664 a month

Owning a starter home is now $1,000+ per month more expensive than renting one. While the metric has decelerated from a $1,188 peak in October 2022, it remains far above historic levels, according to John Burns Research & Consulting.

Factors such as high mortgage rates — currently hovering around the 7% mark — and elevated resale prices continue to challenge for-sale housing affordability. This results in a higher-than-usual number of home renters staying in place as they can’t make the numbers work in such a challenging housing market.

The monthly premium to own versus rent in April hit $1,030 per month, compared to $884 per month at the time last year, a 15% increase, the housing research consultancy found.

Premiums vary greatly by market, but the cheaper markets in the Midwest are more obtainable.

The homeownership premium is cheapest in Indianapolis (7% – $117), Cincinnati (11% – $181), Columbus (24% – $413), Tampa (21% – $467) and Atlanta (24% – $486). Meanwhile, the homeownership premium is highest in Austin (77% – $1,664), Denver (56% – $1,410), Riverside-San Bernardino (46% – $1,109), Miami (39% – $1,095) and Dallas (45% – $1,057), the research shows.

homeownership-more-expensive-graphs-02-min

Interestingly, the homeownership premium is below the national average of $1,030 in 15 of the 20 most popular markets for single-family rental investment, according to JBREC. This can be explained by the fact that “homes in these markets can be purchased at prices where the rents achieve a good yield for the landlord,” the report says. 

(Most single-family rental investors target the $300,000 to $500,000 range, and many have targeted the Southeast, Midwest and Southwest in recent years.)

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular Articles

Latest Articles

Lower mortgage rates attracting more homebuyers 

An often misguided premise I see on social media is that lower mortgage rates are doing nothing for housing demand. That’s ok — very few people are looking at the data without an agenda. However, the point of this tracker is to show you evidence that lower rates have already changed housing data. So, let’s […]

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please