Even as homes gallop towards the last cycle’s peak prices, it remains cheaper to buy than rent in South Florida, but the gap is narrowing, according to real estate website Trulia.com.
On a monthly basis, buying is 52 percent more affordable than renting in Palm Beach County and 47 percent cheaper in Broward County.
“The gap is narrowing as mortgage rates increase and home prices in South Florida continue to climb, but mortgage rates are still low compared with historical norms, and prices are still working their way back up from their post-bubble lows,” Trulia Chief Economist Jed Kolko told the Sun-Sentinel.
South Florida rental rates have increased steadily in part on demand from one-time homeowners whose damaged credit scores disqualifies them for mortgages. Cash-paying investors, particularly in Miami-Dade County, often engage in bidding wars that have jacked up prices and squeezed out traditional buyers. [Sun-Sentinel] — Emily Schmall