RealtyTrac® recently released its 2016 Rental Affordability Analysis, which shows that buying is still more affordable than renting in 58 percent of U.S. housing markets despite home price appreciation outpacing rent growth in 55 percent of markets. The report also shows that the rise in rents is outpacing weekly wage growth in 57 percent of markets.
“Renters in 2016 will be caught between a bit of a rock and a hard place, with rents becoming less affordable as they rise faster than wages, but home prices rising even faster than rents,” says Daren Blomquist, vice president at RealtyTrac. “In markets where home prices are still relatively affordable, 2016 may be a good time for some renters to take the plunge into homeownership before rising prices and possibly rising interest rates make it increasingly tougher to afford to buy a home.”
Among the 52 counties with at least a 10 percent increase in the share of millennials between 2008 and 2013, the least affordable for renters were Kings County, N.Y. (Brooklyn); Queens County, N.Y. (Queens); Virginia Beach City, Va.; Onslow County, N.C. in the Jacksonville metro; and San Francisco County. Average rents in all five of these markets require more than 43 percent of average wage earner’s income.
Other “millennial magnet” markets where rents represent more than one-third of average wages include counties in Panama City, Fla; Seattle; Clarksville, Tenn.; Orlando; Fayetteville, North Carolina; Portland; Charleston, S.C.; Baltimore; Denver, New Orleans; and Austin, Texas.
For more information and to view the full report, visit www.realtytrac.com.
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