LA, NYC buck the national trend on rent vs. own

Los Angeles /
Dec.December 15, 2016 10:30 AM

From the Miami website: Millennials fretting over the high costs of buying a first home, fear no more: renting may be the better financial option anyway.

A new report shows the growth of home prices is outpacing that of rents across many major metropolitan areas in the United States, which could be yet another factor sinking the country’s historically low rate of homeownership.

The Wall Street Journal reported that Florida International University and Florida Atlantic University just released their third-quarter housing index that compares housing prices and rents in 23 major cities, including Miami.

Of all 23, the Journal reported, homes were becoming more expensive faster than rents were rising. Nationwide, the cost of buying a home spiked 5.5 percent year-over-year September, while rents jumped only 3 percent.

The trend has also brought the nation as a whole closer to the tipping point for being renter friendly, though it’s still on the home buying side of the chart for now.

Cities where buying is still the better option, according to the Journal: Atlanta, Boston, Chicago, Cleveland, Los Angeles, New York and Philadelphia. [Wall Street Journal]Sean Stewart-Muniz


Related Articles

arrow_forward_ios
(Getty)
SoCal home prices fall for sixth straight month
SoCal home prices fall for sixth straight month
Chapman College President Emeritus' Jim Doti
Forecast: OC home prices could fall 7% next year
Forecast: OC home prices could fall 7% next year
Rochelle Atlas Maize, Derek Reilly, Cindy Carvel Vincent Vallejo, Derek Reilly, Cindy Carvel)
Agents shift home price strategy as bidding wars deflate
Agents shift home price strategy as bidding wars deflate
46-percent rise in SoCal home payments
Falling SoCal home sales caused by 46% rise in payments
Falling SoCal home sales caused by 46% rise in payments
(Illustration by Kevin Cifuentes for The Real Deal with Getty Images)
Home prices in SoCal fall 1.3% in 30 days, data show
Home prices in SoCal fall 1.3% in 30 days, data show
(Illustration by The Real Deal with Getty Images)
Rising interest rates put brakes on home sales
Rising interest rates put brakes on home sales
Compass' Aaron Kirman with 1047 North Bundy Drive (Compass, Zillow)
Trousdale Estates mansion sells for $42M after price cuts
Trousdale Estates mansion sells for $42M after price cuts
Eric Sussman, Kerry Ann Sullivan, Dana Potter and Eric Finnigan (Eric Sussman, Kerry Ann Sullivan, Dana Potter, John Burns Real Estate)
‘Yawn’ or ‘cold water’ on this week’s rate hike?
‘Yawn’ or ‘cold water’ on this week’s rate hike?
arrow_forward_ios

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

Loading...