Buying is still more affordable than renting in 58% of U.S. housing markets despite home price appreciation outpacing rent growth in 55% of markets. That's the key take-away from the RealtyTrac Rental Affordability Report, which also notes that the rise in rents is outpacing weekly wage growth in 57% of markets.
RealtyTrac vp Daren Blomquist provides the detailed analysis, and a broad understanding of the data, which points to increasing hardship for those who are unable to ante up for homeownership, and are caught in a vicious circle of rent hikes thanks to tight multifamily supplies in many markets. Blomquist writes:
“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,” said 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.”Maybe easier said than done, Daren.