Owning a starter home is now more expensive than renting for $1,000+ a month. While the metric has declined from its October 2022 peak of $1,188, it remains well above historical levels, according to John Burns Research & Consulting,
Thank you for reading this post, don't forget to subscribe!Factors such as high mortgage rates – currently hovering around the 7% mark – and high resale prices continue to challenge the ability of housing to be put up for sale. This results in a higher than normal number of home renters as they cannot make the numbers work in such a challenging housing market.
Housing research consultancy found that monthly premiums rose to $1,030 per month in April, compared to $884 per month at the same time last year, a 15% increase.
Premiums vary greatly by market, but the cheaper Midwest markets are more attainable.
Homeownership premiums are cheapest in Indianapolis (7% – $117), Cincinnati (11% – $181), Columbus (24% – $413), Tampa (21% – $467) and Atlanta (24% – $486). Meanwhile, Austin (77% – $1,664), Denver (56% – $1,410), Riverside-San Bernardino (46% – $1,109), Miami (39% – $1,095) and Dallas (45% – $1,057) has the highest homeowner premium. , research shows.
Interestingly, homeownership premiums in 15 of the 20 most popular markets for single-family rental investment are below the national average of $1,030, according to JBREC. The report states that this can be explained by the fact that “houses in these markets can be bought at prices where the rent brings good returns to the landlord.”
(Most single-family rental investors target the $300,000 to $500,000 range, and many have targeted the Southeast, Midwest and Southwest in recent years.)
