If you live in these counties, buy, don’t rent

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In some areas, it’s actually cheaper to buy a house than to
rent one

Is it better to buy a home or rent?

It’s complicated question that most Americans will ask
themselves at some point, and there’s no easy answer, as
everyone’s circumstances are different. But
a new study from ATTOM Data Solutions
examines the question
through the lens of location and finds that in 53 percent of the
855 U.S. counties studied, it’s more affordable to buy a home
than rent one.

Depending on where you live, this is good news or bad news.
Generally, in rural areas, it’s more affordable to buy than rent,
and in suburban or urban areas, it’s cheaper to rent than buy.
But there are many surprising exceptions, in addition to specific
local trends that are driving housing affordability in particular
U.S. cities.

ATTOM’s researchers found that renting is more affordable than
buying in 36 of 43 counties with a population of 1 million or more.
Among those counties where it was more affordable to buy are the
counties where Miami, Detroit, Philadelphia, Cleveland, and
Pittsburgh are located.

The study also found that home prices are rising faster than
rents in 67 percent of counties, and those counties tended to be in
areas that are already relatively cheap. Conversely, rents rose
faster than home prices in many areas that are already
expensive—Los Angeles County, California; Cook County, Illinois
(where Chicago is located); San Diego County, California; and
Orange County, California.

The most concerning revelation from the study is that home
prices are rising faster than wages in 66 percent of counties.
Plus, the counties where wages were rising faster than home prices
were the areas that could use the most relief—Los Angeles County,
California; Cook County, Illinois, San Diego County, California;
Kings County, New York (Brooklyn); and Orange County,
California.

On the bright side, wages were growing faster than rents in 57
percent of markets, but curiously, many of the same areas where
rents rose faster than wages were also the areas where wages are
growing faster than home prices—Los Angeles County, California;
Cook County, Illinois; San Diego County, California; and Orange
County, California.


Housing affordability has been a growing issue
since
the financial crisis in 2008.
Home prices have exceeded,
matched, or are near their pre-crisis peaks in most major markets,
while wages have generally been stagnant.

The issue has become so concerning that housing has become an
election topic for the first time in decades, as
every major Democratic candidate for president
has released a
formal housing plan, other than frontrunner Joe Biden.

Housing affordability has become strained for a number of
reason, primarily
a shortage of housing,
particularly in urban cities where land
is scarce and expensive, like New York City, San Francisco, and Los
Angeles. When housing supply is low, it drives up rents and home
prices.


The cost of construction materials has also risen dramatically

since the financial crisis, making it more expensive to build new
housing and thus driving up prices. This has led to developers
building fewer homes for the lower- and middle-income brackets, and
more for luxury and wealthy buyers.

But conditions vary from market to market, so check ATTOM’s
map to see how it’s playing out in your county.

Source: FS – All – Architecture 10
If you live in these counties, buy, don’t rent