Real Estate News

Report compares renting and buying homes for 2017

Published: 11 Jan 2017

In the coming year, potential buyers will have to consider many factors before committing to a house. One of these could be whether it's financially viable to buy at all, as opposed to renting. The answer to this will likely vary considerably based on the market, as a recent report from ATTOM Data Solutions showed.

The report drew from 540 different counties across the U.S., finding that buying is more affordable in 354 of them, at least when it comes to three-bedroom properties. Though the counties where buying is more economical than renting are spread out over the map, they are mostly clustered on the east coast and states like Illinois and Florida.

Making buying decisions can be tough, but the drive to own property could rise in areas where buyers know home owning is more cost-effective. The decision to own a home also includes necessary costs such as title insurance.

In some states there were no counties were buying was more less expensive such as South Dakota, Maine and Kansas. By contrast, many of the counties where renting was more modestly priced were located in California. ATTOM senior vice president Daren Blomquist said that the trends of the new year still have yet to be seen.

"While buying continues to be more affordable than renting in the majority of U.S. markets, that equation could change quickly if mortgage rates keep rising in 2017," he said, adding that "renters who have not yet made the leap to homeownership will find it even more difficult to make that leap this year." if that happens

"Additionally, renting may end up being the lesser of two housing affordability evils in a growing number of high-priced markets," Blomquist also said.

To prepare for buying a home, individuals should create a plan and stick to it, keeping themselves from straying too far away from their projected budget. Title insurance adds to the tools at a buyer's disposal and means he or she can save later on.