Rising Rents Reported All Over

Recent news reports focus on rising rents in many cities along with falling vancancy rates all pointing to renewed market pressures to buy rather than rent.  Coming after a few years of declining home ownership along with housing construction running at half the normal pace, this shouldn’t be a big surprise — people need housing and if its not being built or bought, the answer is renting.  Reports include the LA Times on Orange county with rents up 13% in the last year to Crains New York saying that rising rents are driving apartment sales.  Close to New York City in the Jersey suburbs arguments that now is a good time to buy are heard as well.  Yahoo Finance reports a list of 100 cities where rising rents makes buying look attractive. Among the top ten places to buy rather than rent are three S&P/Case-Shiller cities where home prices are unusually weak, under the level of 12 years ago — Detroit, Cleveland and Atlanta.

Comparing the costs or renting and buying a house.

The national picture can be seen in the chart where the pendulum has recently shifted to favor buying over renting after a long wait. Since this is based on the ten cities overall and since renting, like buying, always has a location-location-location element, the chart is more a sign to consider buying than an absolute statement.  As Yahoo Finance notes, in some metro areas center city locations may favor renting while suburbs have shifted to favor buying.

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