The escalating costs of renting are making it a better time to purchase a home in most cities across the country, according to the Florida Atlantic University and Florida International University’s Buy vs. Rent Index.
"This is great news for homeownership and the financial returns to ownership," says Ken Johnson, a real estate economist and one of the index's authors. "We are not where we were in 2012, when nearly any purchase was a sound financial decision. However, overall, we are now in a situation where aggressive marketing from sellers combined with due diligence and sound negotiation from buyers is creating a housing market that's more in line with what we've seen historically.”
Fifteen of the 23 cities in the Buy vs. Rent Index are solidly in “buy” territory. Another five are only marginally in rent territory, the authors note. But, three cities were flagged in the latest report.
"The scores for Dallas, Denver, and Houston have worried us for some time now," says Eli Beracha, co-author of the index. "The last time we saw scores of this magnitude, housing market crashes soon followed."
Source: “Buy vs. Rent Index Stable, Except Where It’s Not,” BUILDER (March 9, 2017)
