Good news, landlords! People still think renting is cheaper than buying

Around 76% of tenants think renting is more affordable: Freddie Mac

TRD New York /
Oct.October 24, 2017 11:20 AM

People are increasingly viewing renting as more affordable than buying a home, a survey from Freddie Mac has found.

Rents in cities across the country as not rising as much as before, thanks to a major spike in construction over the past few years, the Wall Street Journal reported. Home prices, on the other hand, keep going up.

Freddie Mac’s survey, expected to be released tomorrow, found that around 76 percent of renters in August believe renting is a more affordable option than buying. That’s up from around 65 percent of renters in September 2016, according to the Journal.

“We talk virtually every day about how renting is becoming less and less affordable. I think the answer is just that housing is becoming less and less affordable and renting is the more affordable of the two,” David Brickman, executive vice president and head of Freddie Mac Multifamily, told the Journal.

Nearly a quarter of the renters surveyed said flexibility was the reason they chose to rent. In Manhattan last month, the median net effective rent slipped slightly to hit $3,334. Meanwhile, the median sales price of a Manhattan co-op just reached a 28-year high in the third quarter of the year to reach $850,000. The median sale price of a condominium in Manhattan increased 6.3 percent from last year to hit $1.7 million. [WSJ]Miriam Hall


Related Articles

arrow_forward_ios
Nestio's Caren Maio (Credit: Emily Assiran)

“Like TurboTax”: Nestio launches online leasing

“Like TurboTax”: Nestio launches online leasing
(Credit: iStock)

What you need to know about landlords’ challenge to New York’s rent law

What you need to know about landlords’ challenge to New York’s rent law
Among Brooklyn's priciest spots is DUMBO; pictured is the neighborhood's Main Street Park (Credit: iStock)

Why fewer Brooklyn and Queens tenants are moving

Why fewer Brooklyn and Queens tenants are moving
Opendoor CEO Kevin Wu, Daniel Morillo and Ken Griffin (Getty; Opendoor; LinkedIn)

Opendoor hires CIO from Ken Griffin’s Citadel

Opendoor hires CIO from Ken Griffin’s Citadel
(Getty)

Manhattan rents fall below $3,000 for first time since 2011

Manhattan rents fall below $3,000 for first time since 2011
Data on third quarter CRE investments suggests a nationwide improvement, but Manhattan has been slow to recover (iStock)

NY falls behind Dallas, LA in CRE investment as deals surge nationwide

NY falls behind Dallas, LA in CRE investment as deals surge nationwide
Existing home sales rose again in September as listed inventory sunk to a new low. (iStock)

Existing homes sales remain high, but inventory is “historically low”

Existing homes sales remain high, but inventory is “historically low”
 Jennifer Lawrence and 17 Jane Street with Edward Minskoff (Getty; Sciame Construction)

Jennifer Lawrence buys at Ed Minskoff’s West Village condo

Jennifer Lawrence buys at Ed Minskoff’s West Village condo
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...