RealtyTrac, the country’s top source of comprehensive housing information, recently released an analysis of purchased properties during the first quarter of 2015. This report found monthly home payments on an average-priced home is often more economical than the monthly fair market rent on a typical three-bedroom property.
Across 461 counties studied throughout the United States, fair market rent represented 28 percent of the approximated average household income. In contrast, a monthly house payment on a median-priced home, including taxes, down payment, and insurance costs, represented 24 percent of the approximated average income. These statistics show owning a home is an attractive idea for many regions. Some of the top counties where buying favors renting are Bay County, Michigan, Fayette County, Pennsylvania, Tazewell County, Illinois, and Butler County, Ohio.
Even though buying has become an attractive option for many individuals, certain counties still favor a renter’s market. Delaware County, Ohio, Williamson County, Tennessee, and Fort Bend County, Texas are a few places where the fair market rent on a three-bedroom property is more affordable than the costs associated with home buying.
Across the 461 counties analyzed, the average potential annual gross rental yield decreased 42 basis points from one year ago. However, 58 of these counties are experiencing a rising rental market. For instance, Douglas County, Oregon leads the pack as a top place to rent. Cities like Seattle, which are experiencing economic booms, provide the perfect opportunity for people interested in becoming rental investors. For the best return, it is advised to buy properties close to successful businesses and busy downtown locations.
