As a title insurance company serving the Mid-Atlantic region – Washington, D.C., Maryland, Northern Virginia, and Southern Pennsylvania – we know how difficult it is for renters to make the leap to homeownership.
But a new report that examines the most populous counties in the United States confirms that in 2017 it may be more affordable to buy a home than to rent for most Americans. The study, carried out by ATTOM Data Solutions, compared the monthly rent rates of three-bedroom apartments to monthly payments on median priced homes across 540 counties. The monthly home payments include mortgages, property taxes, and insurance costs. Title insurance, obviously, is not factored in because title insurance premiums are only paid once at the time the home is purchased.
In two-thirds of the counties, the rent prices were higher than monthly payments for the homeowners.
The Affordability Equation
Daren Blomquist, senior vice president at ATTOM, admits that affordability has taken a hit as home values have risen, but low interest rates have nonetheless kept rates depressed.
Mortgage rates are expected to rise soon, further dampening future affordability prospects. Even slight increases to mortgage rates could flip the equation, Blomquist says, again making it more affordable to rent than to buy.
Should I Buy or Should I Rent?
The report shows that in 27% of the markets measured, rents have been rising faster than home prices.
Here are some examples of heavily populated areas where buying a home is a more affordable option than renting:
- Cook County (Chicago) – Illinois
- Maricopa County (Phoenix) – Arizona
- Miami-Dade County – Florida
- San Bernardino County – California
- Clark County (Las Vegas) – Nevada
- Tarrant County (Dallas metro) – Texas
- Wayne County (Detroit) – Michigan
- Broward County (Miami metro) – Florida
- Bexar County (San Antonio) – Texas
- Philadelphia County – Pennsylvania
Familiarity with the trends in your local area will keep you a step ahead of the competition.
Title Insurance & Closing Services from Lakeside Title
Lakeside Title Company is a title insurance company that serves builders, lenders, and realtors in Maryland, Washington, D.C., Northern Virginia, and Southern Pennsylvania with title insurance and closing services. Visit our homepage today to learn more about how we can help you!
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