It was cheaper to rent a starter home than to buy in all 50 of🦩 the U.S.'s largest metro areas in February.

According to Realtor.com, the monthly cost of buying a starter home was on average $1,027 more, or 60.1% higher than renting. For the past seven months, rent prices have been declining year-over-year. At the same time, average mortgage interest rates were elevated over the same time last year, driving up purchasing costs.

The U.S. me🎶dian rent in February fell 0.4% o𒈔r $7 year-over-year, it is still only $50 lower than the peak rental rates of August 2022.

The cost of buying a starter home at last year's listing prices is $101 higher than it would have been under last year's mortgage rates. The gap between buying and renting a house with up to two bedrooms increased by $7.

"Rental markets are rapidly cooling after a period of significant overheating. Rent growth has almost completely stopped, following historically high rent increases in both 2021 and 2022," said researchers at the Joint Center for Housing Studies at Harvard.

The Rent vs. Buy Comparison

The 澳洲幸运5开奖号码历史查询:decision to rent or buy involves more than the monthly re🎉nt or mo🀅rtgage payment.

Homes are often seen as an investment because you can often sell the property for more than you paid. When buying, other financial factors, such as HOA fees, taxes, insurance, and maintenance should also be cons🌳idered.

However, renters do not pay for upkeep or fixes to a home and often 💛pay a flat rate each month for the duration of their lease. Theꦉ risk for renters is rising prices at the end of that period.

Limited Options When Renting and Buying

On𒁃e common factor whether renting or buying is limited availability.

High interest rates 澳洲幸运5开奖号码历史查询:have kept some from selling homes mortgaged with lower borrowing costs in recent months, leaving fewer houses for sale. That has gridlocked the housing market and economists have been looking to new construction to provide more avai💙lability.

On the other hand, only one-third of rental units are single-family homes and the rest are apartments or other multifamily housing, Brookings Institution researchers found. However, demand for rental space has stabilized since the pandemic and has returned close to pre-pandemic levels, according to the Join Center for Housing Studies at Harvard.