The Growing Cost of Buying a Home

Sept. 4, 2018

A new monthly report finds that it is becoming increasingly more affordable to rent than buy in the U.S. The cost of buying a home surpassed the cost of renting by 10 percent in July.

Only 41 percent of median income families can afford to buy a median list-priced home in their county, and the median monthly cost of buying a home was $1,647 in July, whereas the median rental cost was $1,267, according to Realtor.com's report. The study also evaluated the share of income necessary to buy a home versus income needed to rent a home, finding that Northern California and New York are home to three of the top 20 counties with the greatest annual growth in the rent-versus-buy gap apiece.

As home prices rise across the U.S., choosing to rent has become increasingly popular. The monthly costs of buying a home have risen by 14 percent over the past year. This is more than three times the 4 percent increase in monthly rental costs. Additionally, the number of places where it is cheaper to buy has significantly declined in the past year.

Read more

Sign up for Pro Builder Newsletters
Get all of the latest news and updates.