Markets & EconomyNews Brief

Zillow: In which U.S. markets does it ‘pay to rent’?

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

In March, the California Association of Realtors hosted a panel -- "The California Series: State of the State" -- revealing that overly strict building codes, an aversion to affordable housing in affluent neighborhoods, and, most of all, exorbitant cost of living is pushing California toward becoming a majority renter state. Zillow's latest "Breakeven Horizon" study, which shows that half of the eight major markets where it "pays to rent" are in California, backs up this assertion. Nationally, it takes two years of homeownership before purchasing the typical median-valued home makes more financial sense than renting. But in areas where home prices are through the roof, it takes even longer. In San Jose, California, a buyer would have to spend 5.1 years for the same result. In San Francisco, it's 4.9 years, followed by Los Angeles with 4.7 years. The markets of Washington, D.C.; and San Diego, both at 4.5 years, round out the list of the five largest markets with the l...