Owning Beats Renting in These High-Priced Areas

DAILY REAL ESTATE NEWS | MONDAY, JULY 25, 2016

In high-priced housing markets, does it still make more financial sense to buy than rent? Yes, according to a study by RealtyTrac.

Looking at data from the first quarter of 2016, the study reveals that even in some counties where home buyers spend the highest percentage of wages to buy a median-priced home its still the better bet for consumers than renting a three-bedroom.

Take a look at some of the high-priced markets where owning is a better financial decision than renting.

Dorchester, S.C.

• Metro area: Charleston-North Charleston, S.C.
• Percent of wages needed to own: 36.59%
• Percent of wages needed to rent: 42.77%

Adams, Colo.

• Metro area: Denver-Aurora-Lakewood, Colo.
• Percent of wages needed to own: 36.89%
• Percent of wages needed to rent: 39.83%

Baldwin, Ala.

• Metro area: Daphne-Fairhope-Foley, Ala.
• Percent of wages needed to own: 38.08%
• Percent of wages needed to rent: 44.62%

Ulster, N.Y.

• Metro area: Kingston, N.Y.
• Percent of wages needed to own: 39.03%
• Percent of wages needed to rent: 43.32%

Kendall, Ill.

• Metro area: Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
• Percent of wages needed to own: 42.95%
• Percent of wages needed to rent: 50.78%

Snohomish, Wash.

• Metro area: Seattle-Tacoma-Bellevue, Wash.
• Percent of wages needed to own: 45.25%
• Percent of wages needed to rent: 48.86%

Ocean, N.J.

• Metro area: New York-Newark-Jersey City, N.Y.-N.J.-Pa.
• Percent of wages needed to own: 45.85%
• Percent of wages needed to rent: 53.23%

Stafford, Va.

• Metro area: Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.
• Percent of wages needed to own: 47.31%
• Percent of wages needed to rent: 51.54%

Source: “12 Pricey Housing Markets Where Owning Still Beats Renting,” National Mortgage News (July 2016)