Sumary of Is It Really Better To Rent These Days Than Buy? Price-To-Rent Ratios Tell The Story.:
- As the graph above shows, price-to-rent ratios vary widely across the county.
- That’s a price-to-rent ratio of 51.8: when house prices are that high, renters tend to come out ahead.
- According to Redfin, the percentage of homes in Detroit that have been purchased by investors is up 119%.
- According to data from Redfin, investors have the highest market share in Phoenix, Miami and Atlanta, where price-to-rent ratios vary from 20.1 to 23.8. With those more moderate price-to-rent ratios, residents would typically find that buying was a smarter financial move than renting as long as they planned to stay put for between 5 to 9 years.
- The idea that it’s good for Americans to be consigned to renting because home prices are so high ignores the fact that the desire of corporate America to turn single-family homes into rentals is part of the reason the home prices are high to begin with.
- Historically, homes in lower-income neighborhoods in a given city have tended to come with lower price-to-rent ratios than homes in higher-income neighborhoods within the same city.