There's Never Been a Worse Time to Buy Instead of Rent

According to a recent report by ATTOM Data Solutions, the cost of homeownership has become significantly higher than the cost of renting in many parts of the country due to rising mortgage rates. The report found that the average price of a home is now 52% higher than the average rent price, making it more expensive to buy a home than to rent one.

This trend is particularly pronounced in areas with high housing costs, such as California and the Northeast. In these regions, the cost of homeownership is up to 80% higher than the cost of renting.

The reason for this shift is largely attributed to rising mortgage rates. As interest rates have climbed in response to the Federal Reserve's efforts to combat inflation, the cost of borrowing money to buy a home has also increased. This has made it more expensive for homebuyers to secure mortgages, making it less financially attractive to purchase a home instead of renting.

The report also found that in some areas, it would take more than 30 years for a homebuyer to recoup the additional costs associated with buying instead of renting. This is due in part to the fact that many potential homebuyers are being priced out of the market altogether due to high housing costs and tight inventory.

Overall, the report suggests that renters may be better off continuing to rent rather than taking on the added financial burden of homeownership in today's market. However, as always, individual circumstances will vary, and it's important for potential homebuyers and renters to carefully consider their financial situation and long-term goals before making a decision.