High home prices make it cheaper to rent than buy in Dallas | Real Estate

High home prices make it cheaper to rent than buy in Dallas | Real Estate

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Even with the recent run up in apartment rents, Dallas-area residents will find it's more affordable to rent than buy a home, a new nationwide report says.

Dallas runs counter to the national trend in a just-released study by Attom Data Solutions.

Researchers found that buying is cheaper than renting in 66 percent of the 540 U.S. counties they studied.

But with North Texas median home prices rising by almost 50 percent in the last five years, the Dallas area has dropped off the list of affordable home buying markets, according to Attom Data Solutions.

"Dallas is less affordable to buy because although rents have been skyrocketing there during this housing boom, home prices have been rising at hyper speed," said Daren Blomquist, senior vice president with ATTOM Data Solutions. "Since 2012, median home prices in Dallas County have risen by 47 while fair market rents have risen 24 percent during the same time period.

"Now over the past year it appears that rent growth is accelerating and outpacing home price growth (12 percent rise in rents versus 8 percent rise in median home prices), but over the longer term home prices have risen faster."

Rising mortgage rates this year will make homebuying even less affordable.

"While buying continues to be more affordable than renting in the majority of U.S. markets, that equation could change quickly if mortgage rates keep rising in 2017," said Blomquist. "In that scenario, renters who have not yet made the leap to homeownership will find it even more difficult to make that leap this year.

"Additionally, renting may end up being the lesser of two housing affordability evils in a growing number of high-priced markets."

Average apartment rents in the Dallas-Fort Worth area increased by more than 6 percent in 2016 to a record $1,042 a month.

But the rise in home costs was even greater, with preowned median home prices jumping by 10 percent last year compared with 2015.

Attom Data Solutions compared the cost of buying a standard 3-bedroom home compared with renting a comparable apartment or house across the country.

The research firm found that both rents and home prices are rising faster than wage in the majority of U.S. markets.

Median home prices in 2016 increased at a rate greater than the average rise in wages in 427 of the 540 counties Attom Data Solutions analyzed.

Even with the recent run up in apartment rents, Dallas-area residents will find it's more affordable to rent than buy a home, a new nationwide report says.

Dallas runs counter to the national trend in a just-released study by Attom Data Solutions.

Researchers found that buying is cheaper than renting in 66 percent of the 540 U.S. counties they studied.

But with North Texas median home prices rising by almost 50 percent in the last five years, the Dallas area has dropped off the list of affordable home buying markets, according to Attom Data Solutions.

"Dallas is less affordable to buy because although rents have been skyrocketing there during this housing boom, home prices have been rising at hyper speed," said Daren Blomquist, senior vice president with ATTOM Data Solutions. "Since 2012, median home prices in Dallas County have risen by 47 while fair market rents have risen 24 percent during the same time period.

"Now over the past year it appears that rent growth is accelerating and outpacing home price growth (12 percent rise in rents versus 8 percent rise in median home prices), but over the longer term home prices have risen faster."

Rising mortgage rates this year will make homebuying even less affordable.

"While buying continues to be more affordable than renting in the majority of U.S. markets, that equation could change quickly if mortgage rates keep rising in 2017," said Blomquist. "In that scenario, renters who have not yet made the leap to homeownership will find it even more difficult to make that leap this year.

"Additionally, renting may end up being the lesser of two housing affordability evils in a growing number of high-priced markets."

Average apartment rents in the Dallas-Fort Worth area increased by more than 6 percent in 2016 to a record $1,042 a month.

But the rise in home costs was even greater, with preowned median home prices jumping by 10 percent last year compared with 2015.

Attom Data Solutions compared the cost of buying a standard 3-bedroom home compared with renting a comparable apartment or house across the country.

The research firm found that both rents and home prices are rising faster than wage in the majority of U.S. markets.

Median home prices in 2016 increased at a rate greater than the average rise in wages in 427 of the 540 counties Attom Data Solutions analyzed.

Authors: CanadianREI

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