the U.S. housing market has continued to move deeper into buy
territory, supporting the belief that housing markets across the country
remain a sound investment.
The BH&J Index is a quarterly report that attempts to answer the question:
In today’s housing market, is it better to rent or buy a home?
The index examines the entire US housing market and then isolates 23 major cities for comparison. The researchers “measure
the relationship between purchasing property and building wealth
through a buildup in equity versus renting a comparable property and
investing in a portfolio of stocks and bonds.”
While most of
the metropolitan markets examined moved further into buy territory (16
of the 23), markets like Dallas, Denver, and Houston are currently deep
into rent territory. In these three markets, it is estimated that
renting will top homeownership 7 out of 10 times.
Due to a lack of inventory, the home prices in the Dallas, Denver, and Houston areas have increased by 11.6%, 8.3%, and 6.6%
respectively. Home prices in these areas will begin to return to more
normal levels once residents realize that renting is not the best
option, therefore bringing home affordability back as well.
majority of the country is strongly in buy territory. Buying a home
makes sense socially and financially, as rents are predicted to increase
substantially in the next year. Protect yourself from rising rents by
locking in your housing cost with a mortgage payment now.