Renting Beats Buying in All 100 Markets Surveyed
Spokane, Washington and Austin, Texas are the two U.S. housing markets most exposed to price corrections, meaning consumers in those areas should strongly consider renting rather than buying, according to a new report from researchers at Florida Atlantic University and Florida International University.
The BH&J National Price-to-Rent Ratios Monthly Report measures the relative cost of owning to renting in 100 metropolitan areas nationwide.
Ken H. Johnson, Ph.D., an economist in FAU’s College of Business, also co-authors separate monthly indexes revealing the most overvalued U.S. markets for home prices and rents. Price-to-rent ratios offer a more complete picture because they show the relative choice within a housing market between buying and renting.
Spokane leads the U.S. with a price-to-rent ratio of 32.08 percent above the long-term average, followed by Austin’s 29.62 percent. Nashville, Tennessee (26.68 percent); Raleigh, North Carolina (25.86 percent); and Seattle (24.58 percent) complete the top five.
Washington, Texas, Utah and North Carolina each have two metros ranked in the top 10.