Half of Americans live in cities where it is cheaper to buy a home than rent according to a new report from ATTOM Data Solutions. But rising home prices in San Diego have led to the point where mortgage payments eat up as much monthly income as a lease. While homeownership remains a key method to accruing long-term wealth, current market conditions in San Diego make it one of the nation's metropolitan areas where renting is more affordable than buying.
"Although buying is still more affordable than renting in the majority of U.S. housing markets, that majority is shrinking as home price appreciation continues to outpace rental growth in most areas," says Daren Blomquist, vice president at ATTOM. "Renting [is] more affordable than buying in 76 percent of counties that have a population of 1 million or more."
Buying a median-priced home is more affordable than renting a three-bedroom property In 54 percent of counties analyzed by ATTOM. Yet in the nation's top 14 most populated counties including San Diego and Los Angeles, home prices are growing faster than rents.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent while 15-year rates are near 3.5 percent.
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