Tag Archives: rent versus buy

Renting A Home More Affordable Than Buying In 59 Percent Of U.S. Housing Markets

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Home Prices Outpacing Wages in 80 Percent of the U.S. Housing Markets

Irvine, CA – Jan. 10, 2019 (PRNewswire) ATTOM Data Solutions, curator of the nation’s premier property database, today released its 2019 Rental Affordability Report, which shows that renting a three-bedroom property is more affordable than buying a median-priced home in 442 of 755 U.S. counties analyzed for the report — 59 percent.

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The analysis incorporated recently released fair market rent data for 2019 from the U.S. Department of Housing and Urban Development, wage data from the Bureau of Labor Statistics along with public record sales deed data from ATTOM Data Solutions in 755 U.S. counties with sufficient home sales data (see full methodology below).

“With rental affordability outpacing home affordability in the majority of U.S. housing markets, and home prices rising faster than rental rates, the American dream of owning a home, may be just that — a dream,” said Jennifer von Pohlmann, director of content and PR at ATTOM Data Solutions. “With home price appreciation increasing annually at an average of 6.7 percent in those counties analyzed for this report and rental rates increasing an average of 3.5 percent, coupled with the fact that home prices are outpacing wages in 80 percent of the counties, renting a home is clearly becoming the more attractive option in this volatile housing market.”

More Affordable to Rent Than Buy in Most U.S. Markets

More Affordable to Rent Than Buy in Most U.S. Markets

Renting more affordable than buying in nation’s most populated counties
Renting is more affordable than buying a home in the nation’s 18 most populated counties and in 37 of 40 counties with a population of 1 million or more (93 percent) — including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California.

Other markets with a population of more than 1 million where it is more affordable to rent than to buy a home included counties in Miami, New York City, Seattle, Las Vegas, San Jose, San Francisco and Boston.

Among the 40 U.S. counties analyzed in the report with a population of 1 million or more, the three where it is more affordable to buy a home than rent were Wayne County (Detroit), Michigan; Philadelphia County, Pennsylvania; and Cuyahoga County (Cleveland), Ohio.

Buy or Rent in 2019 Heat Map

Least affordable rental markets in Northern California, Hawaii, D.C.
The report shows that renting a three-bedroom property requires an average of 38.0 percent of weekly wages across the 755 counties analyzed for the report.

The least affordable markets for renting are Santa Cruz County, California (81.7 percent of average wages to rent); Honolulu County, Hawaii (74.4 percent); Spotsylvania County, Virginia (73.0 percent); Maui County, Hawaii (69.5 percent); San Benito County, California (68.6 percent); Monroe County, Florida (67.3 percent); Sonoma County (Santa Rosa area), California (66.0 percent); Marin County (San Francisco area), California (65.6 percent); and Kings County, New York (63.7 percent).

Most affordable rental markets in Ohio, North Carolina, Wisconsin, Pennsylvania
The most affordable markets for renting are Roane County (Knoxville area), Tennessee (19.7 percent of average wages to rent); Peoria County, Illinois (23.8 percent); Mcminn County (Athens), Tennessee (23.8 percent); Green County (Dayton), Ohio (24.2 percent); and Rhea County (Dayton area), Ohio (24.6 percent).

Among counties with a population of 1 million or more, those most affordable for renting are Allegheny County (Pittsburgh), Pennsylvania (25.1 percent); Cuyahoga County (Cleveland), Ohio (25.6 percent); Saint Louis County, Missouri (26.4 percent); Oakland County (Detroit area), Michigan (26.7 percent); and Wayne County (Detroit), Michigan (27.7 percent).

Rent growth outpacing wage growth in 52 percent of markets
Average fair market rents rose faster than average weekly wages in 394 of the 755 counties analyzed in the report (52 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California.

Average weekly wages rose faster than average fair market rents in 361 of the 755 counties analyzed in the report (48 percent), including Kings County (Brooklyn), New York; Queens County, New York; Clark County (Las Vegas), Nevada; Tarrant County (Dallas-Fort Worth), Texas; Santa Clara (San Jose), California; Broward County (Miami), Florida; and Alameda (San Francisco), California.

Home prices rising faster than wages in 80 percent of markets
Median home prices rose faster than average weekly wages in 601 of the 755 counties analyzed in the report (80 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; San Diego County, California; Orange County, California; and Miami-Dade County, Florida.

Average weekly wages rose faster than median home prices in 154 of the 755 counties analyzed in the report (20 percent), including Kings County (Brooklyn), New York; Queens County, New York; King County (Seattle), Washington; Suffolk County, New York; and Bronx County, New York.

Home prices rising faster than rents in 70 percent of markets
Median home prices rose faster than average fair market rents in 531 of the 755 counties analyzed in the report, including Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; Kings County (Brooklyn), New York; Queens County, New York; and Riverside County, California.

Average fair market rents rose faster than median home prices in 224 of the 755 counties analyzed in the report (30 percent), including Los Angeles County, California; San Diego County, California; Orange County, California; Miami-Dade County, Florida; Dallas County, Texas; and Kings County (Seattle), Washington.

Methodology
For this report, ATTOM Data Solutions looked at 50th percentile average rental data for three-bedroom properties in 2018 from the U.S. Department of Housing and Urban Development, along with Q2 2018 average weekly wage data from the Bureau of Labor Statistics (most recent available) and January-November (YTD) 2018 home price data from ATTOM Data Solutions publicly recorded sales deed data in 755 counties nationwide.

Rental affordability is average fair market rent for a three-bedroom property as a percentage of the average monthly wage (based on average weekly wages). Home buying affordability is the monthly house payment for a median-priced home (based on a 3 percent down payment and including mortgage, property tax, homeowner’s insurance and private mortgage insurance) as a percentage of the average monthly wage.

About ATTOM Data Solutions
ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation’s population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.

Media Contact:
Christine Stricker
(949) 748-8428
christine.stricker@attomdata.com

Data and Report Licensing:
(949) 502-8313
datareports@attomdata.com

Ameritech Financial on Renting Versus Buying a Home and the Impact on Student Loans

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Rohnert, CA – June 29, 2018 (PRNewswire) In 2015, a study of 1,427 adults revealed 41 percent of college-educated Americans with student loans have postponed buying a home because of their debt. However, being able to rent or buy a home does not have to depend on student loan debt. Ameritech Financial, a document preparation company that helps federal student loan borrowers apply for repayment programs, can assist borrowers in applying to reduce their student loan payments and help free up room in their budget for other financial goals.

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A recent study from Zillow reported that student debt has an insignificant effect on your probability of homeownership, as long as you graduate with at least a bachelor’s degree. Jamie Anderson, a staff writer at Zillow, writes about a scenario based on a 33-year-old married couple with children. Let’s say this couple has a master’s degree and no student loan debt; the probability of them owning a home is at 80 percent. Now, give the couple $50,000 in student loan debt and the probability of homeownership drops only 5 percent. What about when it comes to renting?

“Renting versus buying is a hot topic today, and it is not only based on our nation’s economy,” says Tom Knickerbocker, Executive Vice President of Ameritech Financial. “People are unsure about their debt and focus on a narrative surrounding rising loan amounts and stagnant income, and this is why looking into an income-driven repayment plan can be so necessary.” According to Anderson, “If there was a clear relation between student debt and homeownership, we would expect to see more renter households. But we don’t. For households with degrees, the proportion of buyers to renters remains relatively constant at varying levels of student debt.”

While the numbers suggest that buying rates are not down too far for student loan borrowers, individuals may still hesitate to take the leap to homeownership. Those who worry that their student loan payments are too high to support a mortgage payment may wish to look into applying for federal income-driven repayment plans that base their monthly payments on income and family size.

“Nobody should feel like they have to choose between renting, buying, or paying off student loans,” says Knickerbocker. “At Ameritech Financial we help our clients look into repayment options so they can understand their situation and apply for a program that makes sense for them.”

About Ameritech Financial

Ameritech Financial is a private company located in Rohnert Park, California. Ameritech Financial has already helped thousands of consumers with financial analysis and student loan document preparation to apply for federal student loan repayment programs offered through the Department of Education.

Each Ameritech Financial telephone representative has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).

Ameritech Financial prides itself on its exceptional Customer Service.

Ameritech Financial Newsroom

Contact

To learn more about Ameritech Financial, please contact:

Ameritech Financial
5789 State Farm Drive #265
Rohnert Park, CA 94928
1-800-792-8621
media@ameritechfinancial.com

Rising Rents Push Millennials to Become Homeowners

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– Realtor.com® survey reveals who’s looking to buy and what they want

– Forty-four percent of all respondents are looking for a three-bedroom home; 93 percent want at least two bathrooms

– Twenty-three percent of millennials reported rising rent as a trigger for their purchase

– More than 20 percent of 55+ buyers said privacy was the top goal for their purchase; 17 percent of millennials said fulfilling family needs

Santa Clara, CA – March 30, 2018 (PRNewswire) This year, the typical spring buyer is on the hunt for a three bedroom, two bathroom home with a garage and up-to-date kitchen, according to a new survey released today from realtor.com®, a leading online real estate destination. The survey also revealed family needs and rising rents are motivating millennials to get into the market, while 55+ buyers are looking for privacy and comfort in their new home.

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“Although record-low inventory and high prices make this housing market unique, some classic features still top most shoppers’ wish lists,” said Danielle Hale, chief economist for realtor.com®. “At the same time, we found some clear differences in priorities. For instance, older buyers are concerned with privacy and being able to age comfortably, while millennials place more emphasis on family needs, stability, and personal expression.”

Based on online survey of more than 1,000 active buyers conducted in early March by Toluna Research, the survey provides insight into both the most sought after homes as well as the motivations underpinning what shoppers are looking for.

Majority of buyers want space, multiple bathrooms, and a garage
The survey found many commonalities among homebuyers of all ages. In fact, 44 percent of all respondents said they are looking for a three-bedroom home and 93 percent of respondents want at least two bathrooms. Additionally, 27 percent of all buyers rate a garage as one of the most important home features, ahead of an updated kitchen, 24 percent, and open floor plan, 20 percent.

Older Buyers Want Privacy & Comfort; Millennials Favor Family & Self-Expression
According to the survey, more than 20 percent of buyers 55 years and older said that privacy – having a space solely of their own – was their main goal for purchasing a home. That was followed by their motivation for physical comforts at 18 percent and stability, at 15 percent.

By contrast, family needs took precedence for younger buyers. Fulfilling family needs took the top spot for millennial buyers, at 17 percent, followed by stability at 14 percent and personal expression at 13 percent. Only 12 percent of buyers younger than 55 cited privacy as their chief priority. Only 9 percent of 35- to 54-year-old buyers and 6 percent of 55+ cited personal expression as a main goal for purchasing a home.

For Millennials, the Rent is Too High
Twenty-three percent of buyers between 18 and 34 years old reported rising rent as a trigger for their desire to purchase a home – more than any other option. This corresponds with steep increases in rents across the country in recent years, especially in many high-cost urban areas that have become magnets for millennials. HUD data shows that rents were up in 85 of the top 100 metro areas, including 9 metros where rents were up by double-digit percent from a year ago.

Millennials Like Contemporary and Colonial Homes; Older Buyers Prefer Ranches
Among millennials who expressed a home-style preference – 11 percent didn’t – contemporary and colonial homes took the top spots, each favored by 10 percent of respondents. On the other hand, ranches are the most popular home style for buyers 55 and older, favored by 28 percent, followed distantly by contemporary homes at 12 percent. Only 6 percent of millennials favor ranch homes.

For the full results, please visit: www.realtor.com.

Information about realtor.com®’s 2017 home buyer preference survey is available here: news.move.com

About realtor.com®

Realtor.com® is the trusted resource for home buyers, sellers and dreamers, offering the most comprehensive source of for-sale properties, among competing national sites, and the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today helps make all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.

Contact:

Lexie Puckett Holbert
lexie.puckett@move.com