It’s no secret that renting is currently more affordable than buying a house in most markets. That’s largely due to the skyrocketing cost of buying a home over the past several years. Home prices and mortgage rates have both seen substantial increases since the pandemic. But, according to a new report from the National Association of Realtors’ consumer website, the financial gap between renting and buying is beginning to close. Danielle Hale, the website’s chief economist, says renters should keep their eye on homeownership. “Even with rents leveling for nearly two years, high mortgage rates and still-elevated home prices mean renting remains the more budget-friendly option in nearly every major market,” Hale said. “But the narrowing rent versus buy gap we’re seeing in most cities is a signal that the affordability landscape is starting to shift. Renters eyeing homeownership will want to pay close attention in the months ahead.” (source)
