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Housing Index shows renting beats buying in eight major U.S. markets
As the cost of housing continues to soar, deciding whether to buy a home or rent one is a virtual toss-up in many parts of the country.
But the decision is clear-cut in eight major metropolitan areas, according to an analysis by professors at Florida Atlantic University (FAU) and Florida International University.
In Dallas, Denver, Houston, Kansas City and Seattle, consumers looking to build wealth are better off renting a property and reinvesting the money they would have spent on ownership. That is because the total monthly cost of homeownership in those areas is rising faster than monthly rents, the researchers said.
“In these five metros, home prices have shot up so fast, and the potential for near-term price declines is just too great,” said Ken Johnson, a real estate economist and associate dean in FAU’s College of Business. “There is strong evidence that home prices in these markets are significantly higher than their respective long-term pricing