According to an article published in National Mortgage News, the trend of owning a homeownership being a cheaper option than renting is starting to change.
Attom Data Solutions, the company who conducted the study, found homeownership was more affordable than renting in 54% of the top 447 US cities, down from 66% a year ago.
The 14 most populated counties, and in 30 of 39 counties with a population at or above 1 million, renting is more affordable than buying a home.
“Although buying is still more affordable than renting in the majority of U.S. housing markets, that majority is shrinking as home price appreciation continues to outpace rental growth in most areas,” said Daren Blomquist, vice president at Attom, in a press release.
“Renting has clearly become the lesser of two housing affordability evils in many major population centers, with renting more affordable than buying in 76% of counties that have a population of 1 million or more. And when broken down by population rather than number of markets, this data shows that the majority of the U.S. population, 64%, live in markets that are more affordable to rent than to buy,” he continued.
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Owning vs. Renting In Cleveland, Dayton
The tides are starting to turn, but now is still a great time to buy a house in Ohio. Cleveland and Dayton were listed as 2 of the top 10 housing markets where it’s still cheaper to own a home than rent a three-bedroom property.
Check out where Cleveland and Dayton rank among the top 10:
No. 5 Cleveland, Ohio
Three-bedroom rent: $1,105
Percent of average wages to rent: 24.8%
4Q 2017 median home price: $97,700
4Q 2017 percent of wages to buy home: 19.6%
No. 3 Dayton, Ohio
Three-bedroom rent: $1,088
Percent of average wages to rent: 24.1%
4Q 2017 median home price: $132,100
4Q 2017 percent of wages to buy home: 22.1%
Bottom Line
With rates and home values expected to rise in 2018, the sooner you start the process of finding your next home, the better.
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