There's been a lot of talk in and around CRE about the shifting desire of many to rent rather than own a home. Perhaps it makes some feel comfortable, but John Burns Real Estate Consulting points to numbers, not emotions.
"A little over a year ago, the monthly cost of owning (as we calculate it) and renting were virtually identical," they wrote. "Now, owning a home costs $839 more per month than renting. This differential is almost $200 higher than at any time since the turn of the century."
Both home prices and rents have both been on the uptick, but "the disparity between rising homeownership costs and rising rents has been greatest where home prices have accelerated the most." In Raleigh-Durham, Denver, Tampa, Nashville, and Phoenix, the disparities are the largest.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.