There's been a lot of talk in and around CRE about the shifting desire of many to rent rather than own a home. Perhaps it makes some feel comfortable, but John Burns Real Estate Consulting points to numbers, not emotions.
"A little over a year ago, the monthly cost of owning (as we calculate it) and renting were virtually identical," they wrote. "Now, owning a home costs $839 more per month than renting. This differential is almost $200 higher than at any time since the turn of the century."
Both home prices and rents have both been on the uptick, but "the disparity between rising homeownership costs and rising rents has been greatest where home prices have accelerated the most." In Raleigh-Durham, Denver, Tampa, Nashville, and Phoenix, the disparities are the largest.
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