The report shows that both owning and renting remain difficult for average U. But major ownership expenses on typical single-family homes nevertheless require a smaller portion of average wages than renting three-bedroom residences in close to 60 percent of the county-level markets with enough data to analyze. Owning is the more affordable choice - for those who can manage a down payment - despite median home prices generally rising faster over the past year than average rents around the country.
The analysis for this report incorporated data compiled by ATTOM on average rents, as well as median home prices from public-record sales deeds in counties with sufficient single-family home sales data. Those two data sources were combined with average wage figures from the Bureau of Labor Statistics see full methodology below. He added that "the current situation is tenuous, especially if mortgage rates keep going back up like they have in the past couple of months.
But for now, homeownership is the more viable choice. Changes in home prices outpacing rental trends in majority of U. Median prices for single-family homes have increased more over the past year, or declined less than average three-bedroom rents in , or 66 percent, of the counties analyzed in this report.
Counties were included in the report if they had a population of , or more, and sufficient single-family home sales in along with sufficient data showing changes in three-bedroom rents from to Home ownership generally more affordable amid regional disparities Significant differences in the affordability of owning versus renting exist among various regions of the country, with buying a residence most favorable in the Midwest and South, followed by the Northeast.
In about 80 percent of counties analyzed across the Midwest and 60 percent in the South, owning requires smaller portions of average wages. The same is true in about half in the Northeast. The West, meanwhile, stands out as the one region that bucks the trend. In that part of the U. Renting is the better option in about 80 percent of western markets. Among the counties reviewed, the biggest affordability gaps in favor of home ownership are in Suffolk County, NY outside New York City major home-ownership expenses on typical homes purchased in consume 59 percent of average local wages while average three-bedroom rents require percent ; Atlantic County Atlantic City , NJ 48 percent for owning versus percent or renting ; Collier County Naples , FL 79 percent versus percent ; Indian River County Vero Beach , FL 47 percent versus 83 percent and Charlotte County Punta Gorda , FL 43 percent versus 69 percent.
