Homeownership remains cheaper than renting, except in biggest cities

Home ownership is a less expensive option than renting in a majority of U.S. housing markets, even as median home prices shoot through the roof, according to a new report.

A report released Thursday from ATTOM Data Solutions found that owning a median priced home was more affordable than the average rent on a three bedroom property in 58 percent of the 1,154 U.S. counties analyzed using data from the U.S. Department of Housing and Urban Development and Bureau of Labor Statistics.

Renting, however, remains the more affordable options in the majority of large urban areas, the report found.

“Home-prices are rising faster than both rents and wages while wages rise faster than rents. And the housing market boom of the past decade keeps pushing home values to new records,” Todd Teta, chief product officer at Attom said in a statement. “Yet home ownership still remains the more affordable option for average workers in a majority of the country because it still takes up a smaller portion of their pay.”

The report found home prices rising faster than rents in nearly 90 percent of the nation, but that the benefits of rising wages and ultra-low mortgage rates have counteracted that effect. While the last year saw home prices shoot up an average of 1 percent across the country, wages have grown an average of 8 percent, and mortgage rates have stayed low, hovering around 3 percent.

Home prices are growing faster than wages in the majority of the country though, according to the report.

While the report found buying was the most affordable option in suburban and rural areas, renting proved to be more affordable than owning in the nation’s most populous cities where more than one million people live in a single county.

Renting is more affordable than owning in 35 of the 42 counties the report analyzed with populations of more than one million, including in Los Angeles, Chicago, Phoenix, San Diego, and Orange County, California.

The picture isn’t the same for all cities though; Houston, San Antonio, Detroit, Philadelphia, and Tampa are all cheaper for homeowners, according to Attom.

The Southern and Midwestern markets remain the most affordable both for rentals and homeownership, while the West was found to be the least affordable for both renting and buying and the Northeast among the least affordable for buying.

Teta predicted that the trend will continue slowly shifting towards renting being the more affordable option, but for now wage growth and low mortgage rates will continue to favor home buying.

“The trend is slowly shifting toward renters, which could be a major force in easing price increases in 2022. Prices can only go up by so much more before renting becomes financially easier,” he said. “For now, though, rising wages and interest rates around 3 percent are enough to offset recent price run-ups and keep ownership on the plus side of the affordability ledger compared to renting.”

BY BEN VERDE  

https://www.inman.com/2022/01/06/homeownership-remains-cheaper-than-renting-except-in-biggest-cities/

How I Furnished My Entire Home for Less Than $3K: 6 Thrifty Tips

Furnishing a home—whether you’re a new homeowner or you’ve moved to larger digs—can be a time- and budget-consuming struggle, especially if you want quality pieces that aren’t made of plasterboard and glue. But finding great furniture doesn’t have to swallow you—or your salary. In fact, I furnished my house for less than $3,000.

A year ago, my partner and I traded our life on the road for a cabin in the mountains. But, as romantic as settling down sounds, there was a major downside: We didn’t own a stick of furniture.

While being as thrifty as possible wasn’t initially one of my furniture goals, the game was on once I scored a like-new glass and metal patio table set online for $75. And how little I could spend on furnishing our home—with quality furniture—quickly became a challenge that had my total commitment.

The result was beyond rewarding when I realized I’d spent just under $3,000 for all my furniture. Bonus: The only new things I purchased were two mattresses. Here’s what I learned on this journey—and how you can decorate your home on the cheap, too.

1. Join local thrift groups

Buy Nothing or “garage sale” groups on Facebook Marketplace are networks of buyers and sellers that are local online thrift collectives. “Spend nothing” groups are specifically for people who want to get rid of things without charging a dime.

Facebook Marketplace is one of the best online forums for scouting used furniture. When using Marketplace, you can customize your search results by expanding the radius of your location and trying different categories or keyword searches. For example, when I looked for a patio table, I searched for both “outdoor table” and “patio set.”

2. Visit consignment stores

Your local consignment stores may be pricier than what you’d find online, but you can find quality used furniture and closely inspect what you’re buying. You’ll want to see whether or not some essential items for your home—like a sofa or area rug—are clean and in good condition.

3. Splurge selectively

If you’ve spent weeks searching for specific items, it might make sense to spend a little more to get the perfect piece of furniture—even if that means paying full price. And once you’ve bought some furniture, you might need to shell out more to match a style or aesthetic you want to maintain.

Similarly, you might want to splurge on certain items to guarantee their quality and cleanliness. (For example, buying a new mattress rather than a cheap used one.) The key is to know when it’s worth shelling out the bucks. If it’s an item you desperately need and won’t find for less, spending more might be the answer.

4. Keep an eye out for freebies

Depending on where you live, you might be able to find some quality furniture on trash night. And if you see a dumpster outside someone’s home, don’t be shy—slow down and keep your eyes peeled for anything that might be worth taking and restoring. A coat of paint can revive just about any piece of furniture.

5. Watch for sales

If you’re patient, you might catch a furniture sale in one of your local stores or malls. Keep an eye open for deals after holidays and whenever the seasons change. For example, fall can be a great time to find bargain outdoor furniture. Why? Because no one else is shopping for a patio set at the end of the season.

6. Come up with a plan

Furnishing an entire home (or even just a room) can be incredibly stressful. That’s why it helps to have a plan. Sit down, develop a numbered list of the furniture you need, and prioritize. That way, you’ll know what’s worth splurging on or if you should wait a bit longer for a better deal.

And get comfortable with haggling: Bargaining has never been my strong suit, but learning the skill is a must if you’re trying to furnish your entire home on a budget.

I found out that most sellers expect you to bargain. And it turns out that bargaining is why some sellers set prices higher in the first place: When you bargain with sellers, they’ll still be getting a fair price—and you’ll be getting the deal of a lifetime.

By Larissa Runkle Jan 3, 2022 in realtor.com