Are you set up for success in 2016? Join 2,500 real estate industry leaders Aug. 4-7, 2015, at Inman Connect in San Francisco. Get Connected with the people and ideas that will inspire you and take your business to new heights. Register today and save $100 with code Readers.


Takeaways:

  • It’s more affordable to buy than rent in two-thirds of the markets, but the balance is shifting.
  • The 188 counties where it is more affordable to buy have a combined population of 74 million, just 54 percent of the 137 million combined population in all 285 counties analyzed.
  • The buy-or-rent balance shifted to 58 percent in favor of buying in 2013 and 56 percent in favor of buying in 2014 before dropping to the 54 percent level in 2015.

Although it’s still more affordable to buy than it is to rent in two-thirds of U.S. housing markets, the balance is shifting away from buy and toward rent.

A recent RealtyTrac buy-or-rent analysis of 285 counties nationwide showed that in 2015 the monthly house payment on a three-bedroom single-family home or condo — assuming a 10 percent down payment and including mortgage, property taxes and insurance — was more affordable in 188 counties (66 percent) than the fair-market rent for a three-bedroom property.

But the buy-or-rent equation does not look so tilted toward buying based on population numbers. The 188 counties where it is more affordable to buy have a combined population of 74 million, just 54 percent of the 137 million combined population in all 285 counties analyzed.

When compared to the past three years, it’s apparent that the trajectory is moving toward renting as a more affordable option than buying based on population.

That’s certainly not to say that renting is becoming more affordable. Rents have just risen at a slower pace over the past three years than home prices, particularly in densely populated markets.

In 2012, the buy-or-rent balance was 65 percent in favor of buying based on population. It slowed to 58 percent in favor of buying in 2013, and 56 percent in favor of buying in 2014 before dropping to the 54 percent level in 2015.

The interactive visual below shows how this shift is occurring across the four years, and the 285 counties analyzed. Click on any county to see the buy-or-rent specifics for that county, and then move the slider for year to see how that buy-or-rent balance shifts over the four years.

Daren Blomquist is the vice president of RealtyTrac.

Email Daren Blomquist.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×