Real estate data powerhouse RealtyTrac recently released its 2016 Rental Affordability Analysis that suggests buying a home is more affordable that renting in 58% of US markets. The report also says that the rise in rents is outpacing wage growth in 57% of the same markets.
“Renters in 2016 will be caught between a bit of a rock and a hard place, with rents becoming less affordable as they rise faster than wages, but home prices rising even faster than rents,” said Daren Blomquist, vice president at RealtyTrac. “In markets where home prices are still relatively affordable, 2016 may be a good time for some renters to take the plunge into homeownership before rising prices and possibly rising interest rates make it increasingly tougher to afford to buy a home.”
