A new report shows that housing costs, spurred by soaring home prices and rising mortgage rates, were more expensive than rental costs in April.

Demand Shifting from Owning to Renting

The single-family rental sector is definitely having “a moment” amid soaring home prices and fast-rising mortgage rates.  More and more prospective buyers, many priced out of the housing market or forced to buy a smaller house in a less wanted location, are choosing to rent despite rent prices increasing +15.5% y/y, according to Realtor.com.

Just last year, the monthly cost of owning and renting was nearly identical.  Now, according to a newly released report from John Burns Real Estate Consulting, homeownership costs in April were +$839 more per month than renting.  This differential is nearly $200 more than at any time since 2000.

An important question for you.  Spring 2022 is here…have you completed your 2022 Real Estate Business and Lead Generation Plan? If not, no worries. We have done the hard work for you. Download your 2022 REAL ESTATE TREASURE MAP! Text HARRIS to 47372. It’s that simple and takes 3 seconds. Text HARRIS to 47372 and when you do we will instantly text you back with a link to download. BONUS: For a limited time when you text HARRIS to 47372 you will also receive a Coaching Call!

4 Msgs/Month. Reply STOP to cancel, HELP for help. Msg&data rates may apply. Terms & Privacy: slkt.io/JWQt

The result?  The rental sector’s current “moment” may last much longer than a moment.

Y/Y Growth Costs to Own vs Single-Family Rent

Metro        Cost to Own   Cost to Rent      Difference

Raleigh-Durham  51%         9%                      42%

Nashville            49%          9%                     40%

Denver               42%          4%                     38%

Tampa                49%          14%                   35%

Phoenix              47%           13%                  35%

Jacksonville        47%           13%                  34%

Las Vegas           47%           13%                  34%

Orlando             46%            13%                  33%

Riverside           41%             8%                   33%

Charlotte           45%            12%                   32%

Atlanta               43%            11%                  32%

US National         37%             6%                   31%

Miami                 41%             10%                   30%

Austin                 40%             10%                   30%

Indianapolis         35%              6%                   29%

San Antonio         38%               9%                   29%

Dallas                 39%              11%                    29%

Cincinnati            30%              2%                     28%

Columbus           34%               6%                     28%

Houston              32%               7%                    25%

Chicago               27%               4%                    23%

Calculations of Costs

John Burns Real Estate Consulting calculated costs to own (including payment and maintenance) by assuming a home purchase at 80% of a currently median-priced existing home with a 5% down payment and a 30-year fixed-rate mortgage.  Also included are PITI plus mortgage insurance and maintenance costs from 0.85% to 1.25% of home value.

JBREC calculated single-family rent cost by assuming a home valuation at 80% of the current median-priced existing home and researching asking rents collected.  Also included is renter’s insurance based on state level data.

URGENT! Exclusive Invite: Join Premier Coaching for FREE! You read that correctly, Premier Coaching for the first 30 days is 100%, no strings attached FREE. Here is what you get: DISC Personality Test, Seller and Buyer Scripts, Presentations, Lead Generation Systems, Market Shift Plan, Real Estate Treasure Map, Members Only Community Groups (and a ton more). The best part is you will have a DAILY Live Coaching Call with a Harris Certified Coach. Yep, you read that correctly….every weekday you will attend a semi-private coaching session with your coach. All of this is 100% FREE. Of course, you want to join Premier Coaching. There is Zero Risk and joining costs you nothing. This is the Real Estate Success system you need in this quickly changing market. Join Premier Coaching NOW

Thanks to John Burns Real Estate Consulting and RealTrends.

Claim Your FREE Real Estate Treasure Map!