Rental prices are on the decline in America’s largest metropolitan areas, making it more affordable to be a tenant than a homebuyer. According to the Realtor.com® February rental report, prices dropped annually by 0.4% to a median of $1,708 a month, making purchasing a starter home 60.1% higher in cost compared to renting. The report highlights the following key points:

– 7th consecutive month of annual rental price decreases
– Median rent dropped by $7 to $1,708 a month in February
– Buying a starter home costs buyers approximately $1,027 more per month
– Studios experienced the largest price cut with a 1.5% decrease in rent

The shift towards renting being more affordable than buying is attributed to builders constructing more apartment buildings and rising home prices coupled with high mortgage rates. The trend is particularly evident in cities like Austin, TX, where it is significantly more expensive to buy a starter home than to rent one.

You can read this full article at: https://papersourceonline.com/its-now-officially-cheaper-to-rent-than-buy-a-home-in-the-50-largest-u-s-metros/(subscription required)

Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid. Contact us today for more information.