Buying a Home More Affordable Than Renting in 54 Percent of U.S. Markets

Post featured image

But 64 Percent of Population Live in Markets More Affordable to Rent Than Buy;
Least Affordable Rental Markets Led by Counties in Northern California, DC, Brooklyn;
Most Affordable Rental Markets in Alabama, Illinois, Ohio, Tennessee

IRVINE, Calif. – Jan. 11, 2018 — ATTOM Data Solutions, curator of the nation’s largest multi-sourced property database, today released its 2018 Rental Affordability Report, which shows that buying a median-priced home is more affordable than renting a three-bedroom property in 240 of 447 U.S. counties analyzed for the report — 54 percent.

The analysis incorporated recently released fair market rent data for 2018 from the U.S. Department of Housing and Urban Development, wage data from the Bureau of Labor Statistics along with public record sales deed data from ATTOM Data Solutions in 447 U.S. counties with sufficient home sales data (see full methodology below).

“Although buying is still more affordable than renting in the majority of U.S. housing markets, that majority is shrinking as home price appreciation continues to outpace rental growth in most areas,” said Daren Blomquist, vice president at ATTOM Data Solutions. “Renting has clearly become the lesser of two housing affordability evils in many major population centers, with renting more affordable than buying in 76 percent of counties that have a population of 1 million or more. And when broken down by population rather than number of markets, this data shows that the majority of the U.S. population — 64 percent — live in markets that are more affordable to rent than to buy.”

Renting more affordable than buying in nation’s most populated counties

Counter to the overall trend, renting is more affordable than buying a home in the nation’s 14 most populated counties and in 30 of 39 counties with a population of 1 million or more (76 percent) — including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California.

Other markets with a population of more than 1 million where it is more affordable to rent than to buy a home included counties in Miami, New York City, Seattle, Las Vegas, San Jose, San Francisco and Boston.

“The thing about this data that concerns me the most is that it is now more affordable to rent in the greater Seattle area than buy. Even with solid income growth, the rapid rise in home prices is keeping many would-be buyers out of ownership,” said Matthew Gardner, chief economist with Windermere Real Estate, covering the Seattle market. “To make matters worse, rapid rental rate growth in the core King County market is forcing many renters to look farther out to find something they can afford. Seattle needs considerably more affordable housing for renters and home buyers alike. Unless something changes, the area will remain very expensive, pricing many buyers out of the market.”

Among the 39 U.S. counties analyzed in the report with a population of 1 million or more, the nine where it is more affordable to buy a home than rent were Tarrant County (Dallas), Texas; Broward County (Miami), Florida; Bexar County, (San Antonio) Texas; Wayne County (Detroit), Michigan; Philadelphia County, Pennsylvania; Hillsborough County (Tampa-St. Petersburg), Florida; Cuyahoga County (Cleveland), Ohio; Allegheny County (Pittsburgh), Pennsylvania; and Saint Louis County, Missouri.

Least affordable rental markets in Northern California, DC, Brooklyn

The report shows that renting a three-bedroom property requires an average of 38.8 percent of weekly wages across the 447 counties analyzed for the report.

The least affordable markets for renting were Marin County, California (79.5 percent of average wages to rent); Spotsylvania County (Washington, D.C. area), Virginia (75.5 percent); Honolulu County, Hawaii (71.9 percent); Sonoma County (Santa Rosa area), California (67.6 percent); and Kings County, New York (67.4 percent).

Most affordable rental markets in Alabama, Illinois, Ohio, Tennessee

The most affordable markets for renting were Madison County (Huntsville), Alabama (22.3 percent of average wages to rent); Tazewell County (Peoria), Illinois (23.6 percent); Greene County (Dayton), Ohio (24.1 percent); Sullivan County (Kingsport-Bristol), Tennessee (24.2 percent); and Cuyahoga County (Cleveland), Ohio (24.8 percent).

Rents rise faster than wages in 60 percent of markets

Average fair market rents rose faster than average weekly wages in 266 of the 447 counties analyzed in the report (60 percent), including Los Angeles County, California; Cook County, Illinois; Harris County, Texas; Maricopa County, Arizona; and San Diego County, California.

Average weekly wages rose faster than average fair market rents in 181 of the 447 counties analyzed in the report (40 percent), including King County (Seattle), Washington; Clark County (Las Vegas), Nevada; Bexar County (San Antonio), Texas; Middlesex County (Boston), Massachusetts; and Suffolk County (Long Island), New York.

Home prices rising faster than rents in 59 percent of markets

Median home prices rose faster than average fair market rents in 263 of the 447 counties analyzed in the report, including Los Angeles County, California; Cook County, Illinois; San Diego County, California; Orange County, California; and Miami-Dade County, Florida.

Average fair market rents rose faster than median home prices in 184 of the 447 counties analyzed in the report (41 percent), including Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; Kings County (Brooklyn), New York; Queens County, New York; and Tarrant County, Texas in the Dallas metro area.

Methodology
For this report, ATTOM Data Solutions looked at 50th percentile average rental data for three-bedroom properties in 2018 from the U.S. Department of Housing and Urban Development, along with Q2 2017 average weekly wage data from the Bureau of Labor Statistics (most recent available) and Q4 2017 home price data from ATTOM Data Solutions publicly recorded sales deed data in 540 counties nationwide.

Rental affordability is average fair market rent for a three-bedroom property as a percentage of the average monthly wage (based on average weekly wages). Home buying affordability is the monthly house payment for a median-priced home (based on a 3 percent down payment and including mortgage, property tax, homeowner’s insurance and private mortgage insurance) as a percentage of the average monthly wage.

Data Licensing and Custom Report Order

Investors, businesses and government institutions can contact ATTOM Data Solutions to purchase the full dataset behind the Year-End and Q4 2015 U.S. Home Flipping report, including data at the state, metro, county and zip code level. The data is also available via bulk license or in customized reports. For more information contact our Data Solutions Department at 949.502.8313

or datareports@attomdata.com

About ATTOM Data Solutions
ATTOM Data Solutions is the curator of the ATTOM Data Warehouse, a multi-sourced national property database that blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. residential and commercial properties. The ATTOM Data Warehouse delivers actionable data to businesses, consumers, government agencies, universities, policymakers and the media in multiple ways, including bulk file licenses, APIs and customized reports.

ATTOM Data Solutions also powers consumer websites designed to promote real estate transparency: RealtyTrac.com is a property search and research portal for foreclosures and other off-market properties; Homefacts.com is a neighborhood research portal providing hyperlocal risks and amenities information; HomeDisclosure.com produces detailed property pre-diligence reports.

ATTOM Data and its associated brands are cited by thousands of media outlets each month, including frequent mentions on CBS Evening News, The Today Show, CNBC, CNN, FOX News, PBS NewsHour and in The New York Times, Wall Street Journal, Washington Post, and USA TODAY.

Media Contact:
Christine Stricker
714.873.4275
christine.stricker@attomdata.com

Data and Report Licensing:
949.502.8313
datareports@attomdata.com

Please contact us if you have questions about the underlying data referenced in this article, or would like to have access to that data in the form of custom reports, API or bulk files.

33 Responses to “Buying a Home More Affordable Than Renting in 54 Percent of U.S. Markets”

January 10, 2018 at 9:11 pm, Why it makes more sense to rent than buy | Wealth & Knowledge Report said:

[…] (64%) live in a county where renting takes up a smaller portion of one’s paycheck than buying, according to a report released Thursday by real estate data firm Attom Data Solutions. And yet in more than half (54%) of housing markets […]

Reply

January 10, 2018 at 9:33 pm, Why it makes more sense to rent than buy | Tradepreneurs said:

[…] (64%) live in a county where renting takes up a smaller portion of one’s paycheck than buying, according to a report released Thursday by real estate data firm Attom Data Solutions. And yet in more than half (54%) of housing markets […]

Reply

January 10, 2018 at 9:52 pm, Why it makes more sense to rent than buy | Trading After Retirement said:

[…] (64%) live in a county where renting takes up a smaller portion of one’s paycheck than buying, according to a report released Thursday by real estate data firm Attom Data Solutions. And yet in more than half (54%) of housing markets […]

Reply

January 10, 2018 at 10:32 pm, Why it makes more sense to rent than buy - IndianTaxHome said:

[…] (64%) live in a county where renting takes up a smaller portion of one’s paycheck than buying, according to a report released Thursday by real estate data firm Attom Data Solutions. And yet in more than half (54%) of housing markets […]

Reply

January 10, 2018 at 10:35 pm, Why it makes more sense to rent than buy | g6 said:

[…] (64%) live in a county where renting takes up a smaller portion of one’s paycheck than buying, according to a report released Thursday by real estate data firm Attom Data Solutions. And yet in more than half (54%) of housing markets […]

Reply

January 10, 2018 at 11:18 pm, Why it makes more sense to rent than buy – Retirement Cheat Sheet said:

[…] live in a county where renting takes up a smaller portion of one’s paycheck than buying, according to a report released Thursday by real estate data firm Attom Data Solutions. And yet in more than half (54%) of housing markets […]

Reply

January 11, 2018 at 12:32 am, Owning Is Cheaper Than Renting In Over Half Of US Counties - Minnesota Real Estate Broker Blog said:

[…] renting is often seen as a more affordable alternative to buying. But as ATTOM Data Solutions latest rental affordability report shows, that isn’t necessarily true for a good chunk of the […]

Reply

January 11, 2018 at 7:49 am, Owning is cheaper than renting in over half of US counties - Randle Report said:

[…] renting is often seen as a more affordable alternative to buying. But as ATTOM Data Solutions latest rental affordability report shows, that isn’t necessarily true for a good chunk of the […]

Reply

January 11, 2018 at 2:41 pm, Check This Map Before Deciding Whether To Rent Or Buy A House | newszero.com said:

[…] about you ― you probably already know you’ll be a renter for the foreseeable future. But in 54 percent of the nation’s housing markets, it’s still more affordable to buy than rent, according to a 2018 rental affordability report from Attom Data […]

Reply

January 11, 2018 at 2:46 pm, Check This Map Before Deciding Whether To Rent Or Buy A House | geopost247.com said:

[…] about you ― you probably already know you’ll be a renter for the foreseeable future. But in 54 percent of the nation’s housing markets, it’s still more affordable to buy than rent, according to a 2018 rental affordability report from Attom Data […]

Reply

January 11, 2018 at 2:48 pm, Check This Map Before Deciding Whether To Rent Or Buy A House - Day Trader Site said:

[…] about you ― you probably already know you’ll be a renter for the foreseeable future. But in 54 percent of the nation’s housing markets, it’s still more affordable to buy than rent, according to a 2018 rental affordability report from Attom Data […]

Reply

January 11, 2018 at 3:16 pm, Check This Map Before Deciding Whether To Rent Or Buy A House | newsmornings.com said:

[…] about you ― you probably already know you’ll be a renter for the foreseeable future. But in 54 percent of the nation’s housing markets, it’s still more affordable to buy than rent, according to a 2018 rental affordability report from Attom Data […]

Reply

January 11, 2018 at 7:48 pm, Check This Map Before Deciding Whether To Rent Or Buy A House – DollarViral said:

[…] about you ― you probably already know you’ll be a renter for the foreseeable future. But in 54 percent of the nation’s housing markets, it’s still more affordable to buy than rent, according to a 2018 rental affordability report from Attom Data […]

Reply

January 11, 2018 at 8:16 pm, Why it makes more sense to rent than buy | Virmmac | Virtual IR, Marketing, Media and Administration CenterVirmmac | Virtual IR, Marketing, Media and Administration Center said:

[…] live in a county where renting takes adult a smaller apportionment of one’s paycheck than buying, according to a news expelled Thursday by genuine estate information organisation Attom Data Solutions. And nonetheless in some-more than […]

Reply

January 12, 2018 at 1:14 am, Check This Map Before Deciding Whether To Rent Or Buy A House – FiveStarsTV said:

[…] about you ― you probably already know you’ll be a renter for the foreseeable future. But in 54 percent of the nation’s housing markets, it’s still more affordable to buy than rent, according to a 2018 rental affordability report from Attom Data […]

Reply

January 12, 2018 at 9:47 am, Buying a Home Is More Affordable Than Renting in These U.S. Markets - American Mortgage Corporation said:

[…] According to analysis of 447 counties by ATTOM Data Solutions, buying a median-priced home is more affordable than renting a three-bedroom property in 240 counties, or 54 percent of the total housing markets. However, renting is more affordable than buying a home in the 14 most populated counties and in 30 of 39 counties with a population of one million or more. This includes some of the most expensive markets, including the San Jose, Seattle, San Francisco and New York City metro areas, as well as California’s Los Angeles and San Diego Counties. […]

Reply

January 12, 2018 at 12:11 pm, Check This Map Before Deciding Whether To Rent Or Buy A House - Randle Report said:

[…] about you ― you probably already know you’ll be a renter for the foreseeable future. But in 54 percent of the nation’s housing markets, it’s still more affordable to buy than rent, according to a 2018 rental affordability report from Attom Data […]

Reply

January 13, 2018 at 6:06 pm, This week’s real estate headlines | Reno Real Estate Blog said:

[…] from ATTOM Data Solutions: Buying a Home More Affordable Than Renting in 54 Percent of U.S. Markets […]

Reply

January 13, 2018 at 10:40 pm, Housing by the Numbers: Jan 12, 2018 - Isabel Wang said:

[…] Association of Realtors is touting ATTOM Data’s finding that buying is cheaper than renting in 54% of 447 counties it analyzed. While this is true, it […]

Reply

January 16, 2018 at 4:44 am, Buying More Affordable Than Rent In Most Markets • Western Nevada Real Estate - Dale Armstrong said:

[…] When it comes time to make a move, most of us are choosing between renting a place or buying a house. And making that calculation has a lot to do with where you are in your life and what your goals are. But it also has a lot to do with your financial situation. Because of this, ATTOM Data Solutions analyzes the average rent for a three-bedroom property, weekly wage data, and home price information in 540 counties nationwide in an effort to determine whether renting or buying is the more affordable choice. According to their most recent Rental Affordability Report, buying a home is still the more affordable choice in a majority of markets. However, the data is a bit more complicated than that. In fact, though buying is more affordable in the majority of markets, it isn’t in a lot of the country’s most populated counties. The data shows that many markets where the population is above 1 million have affordability challenges not seen in areas further from major metropolitan centers. More here. […]

Reply

January 16, 2018 at 8:28 am, Don't Buy a House Until You Check This Map - Life Money Stuff said:

[…] about you ― you probably already know you’ll be a renter for the foreseeable future. But in 54 percent of the nation’s housing markets, it’s still more affordable to buy than rent, according to a 2018 rental affordability report from Attom Data […]

Reply

Leave a Reply

Your email address will not be published. Required fields are marked *