Homeownership Demand Up

December 1, 2011

in News

Homeownership Demand Up

The monthly cost of owning a median-priced home (including taxes and insurance) is lower than the average cost to rent in 12 metro areas, according to a Wall Street Journal survey. In 15 of the 27 cities surveyed, it is still less expensive to rent, but the scale has been tipping in favor of homeownership. In fact, according to the survey, homeownership is more affordable than it’s been in 15 years. Some of the cities where homeownership costs less than renting include Atlanta, Chicago, Detroit, Las Vegas, Miami, Phoenix and St. Louis. Not coincidentally, some of those areas are also the ones where home prices dropped the furthest during the housing crash. Rental rates rose nationwide about 4 percent, while home prices continue to fall and mortgage rates remain low. There are signs that the tide is turning back to homeownership and buyers are taking advantage of affordability in the housing market. Pending home sales rose 10.4 percent in October from a month earlier, according to the National Association of Realtors (NAR). [Read this article]

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