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Rents Are So High It Cheaper to Own a House in These Cities

Rents Are So High It Cheaper to Own a House in These Cities

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The monthly cost of having the first home was much cheaper than renting a unit of the same size in just over half of the U.S. metropolitan area. in January, according to a new report by Realtor.com, the forum list.

Top markets that favor emerging home buyers include Birmingham, Alabama, ($ 533 a month lower than rental), Cleveland ($ 516 lower), and Pittsburgh ($ 585 lower). The report described the first home as having no two bedrooms, and the monthly costs include rent, rent, insurance, and homeowner’s association; the approach took a low payout of 7% and a mortgage rate of 3.45%.

The report highlights the trend in rising rental prices across the country. The average U.S. rental price increased by 19.8% year-on-year in January. That marks the eighth consecutive month that the rental price has doubled. Realtor.com expects the rental to continue to exceed the listing rates by 2022.

However, house prices have also been rising. The monthly cost of buying a two-bedroom house increased by 11% in January, year after year. Realtor.com chief economist Danielle Hale says in a statement to the media that those who want to buy homes will have lower costs now than at the end of the year as mortgage rates continue to rise. (Check out Money Options for the best real estate lenders.)

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Housing prices still outpace renting costs in major tech hubs

Bucking the overall trend, rent prices remain lower than starter home costs in some areas of the country.

Eight out of the top 10 metro markets that favored renting were in major tech centers like Austin, Texas, and San Francisco, according to the Realtor.com study. Rents Are So High It Cheaper to Own a House in These Cities The monthly, first-time home-owning costs across these 10 metro areas were 41.6% ($978) higher than rents.

In January, the average monthly cost of owning was 24.8% ($536) higher than the cost of renting in 24 of the 50 largest metros.

The current housing market is facing limited inventory and expensive asking prices in major tech hubs. Moreover, Realtor.com notes that inventory in major tech centers usually includes a high share of condos, which typically involve hefty homeowners association fees, which can significantly drive up monthly housing costs.

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Every Saturday, Money real estate editor Sam Sharf dives deep into the world of real estate, offering a fresh take on the latest housing news for homeowners, buyers, and daydreamers alike.

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