Based on latest numbers, it’s now more expensive than ever to pay a mortgage versus renting.
Higher mortgage rates and housing prices, according to the Wall Street Journal, are contributing to the disparity in prices.
According to the survey, a buyer who takes out a 30-year mortgage on a $430,000 home with a 10% down payment would pay around $3,200 each month before extra fees such as upkeep and taxes.
Wall Street Journal reports that the cost of a mortgage has surpassed the cost of renting for the first time since 1996.
Rent prices are levelling down after a spike during the pandemic.
According to Rent.com, the national median rental price declined for the first time in six months in September, with the national median rental price currently standing at $2,011.
That’s a 2% difference, or around $40 less than the August median rental price. It has already reached its lowest median rental price since April 2023.
“I’m seeing it’s slowing a bit on the rental side,” said Max Stokes, a real estate agent at Compass Real Estate in New Jersey who handles sales and rentals. “Landlords have already pushed it as far as they could.”
Stokes claims that landlords have levelled pricing hikes in response to the economy and inflation.
Rent prices are being held down by below-normal demand, increased inventory, and high pricing at this time last year.
Rent costs in the United States are up 0.4% year on year, or $8 per month.