IRVINE, CA—RealtyTrac, the nation's leading source for comprehensive housing data, has released its 2016 Rental Affordability Analysis, which shows that buying is still more affordable than renting in 58% of US housing markets despite home price appreciation outpacing rent growth in 55% of markets. The report also shows that the rise in rents is outpacing weekly wage growth in 57% of markets.
The analysis included recently-released rental data from the US Department of Housing and Urban Development, wage data from the Bureau of Labor Statistics along with public record sales deed data from RealtyTrac in 504 counties with a population of at least 100,000 (see full methodology below).
"Renters in 2016 will be caught between a bit of a rock and a hard place, with rents becoming less affordable as they rise faster than wages, but home prices rising even faster than rents," said Daren Blomquist, vice president at RealtyTrac. "In markets where home prices are still relatively affordable, 2016 may be a good time for some renters to take the plunge into home ownership before rising prices and possibly rising interest rates make it increasingly tougher to afford to buy a home."
Among other findings:
o Rents on 3-bedroom properties in 2016 will be up 3.5% on average from 2015
o Average weekly wages up 2.6% year-over-year
o Median home prices up 5.0% year-over-year
o The top five least-affordable counties for renters are in Honolulu, Washington, D.C., New York City (Brooklyn), and Northern California metros of Salinas, Santa Cruz and San Francisco. Average rent requires more than 60% of average wages in all five least affordable counties.
o Top five most-affordable counties for renters are in Huntsville, AL; Peoria, IL; Davenport, IA; Atlanta; and Pittsburgh. Average rent requires 25% or less of average wages in all five most affordable counties.
The full report is available from RealtyTrac.
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