Mortgage payments fall lower than rent in 22 of the 50 largest US metros
According to a new Zillow Home Loans analysis, monthly mortgage payments are less expensive than rent in 22 of the 50 largest U.S. metros. Recent dips in mortgage rates have significantly reduced monthly payments, making homeownership more attainable in certain areas. New Orleans, Chicago, and Pittsburgh offer the greatest savings when comparing rent to mortgage payments.
Nationally, the typical rent payment is $2,063 per month, while the typical mortgage payment is $1,827, resulting in a $236 monthly savings for homeowners. However, additional costs such as taxes, insurance, and maintenance should be considered for both renting and homeownership.
Zillow Home Loans has introduced a new tool called BuyAbility, which helps prospective buyers determine their home affordability and likelihood of mortgage pre-approval. With inventory up 22% compared to last year, buyers are gaining bargaining power in the current market.
Secondo una nuova analisi di Zillow Home Loans, i pagamenti mensili del mutuo sono meno costosi dell'affitto in 22 delle 50 principali aree metropolitane degli Stati Uniti. Recenti cali nei tassi di interesse sui mutui hanno ridotto significativamente i pagamenti mensili, rendendo l'acquisto di una casa più accessibile in alcune aree. New Orleans, Chicago e Pittsburgh offrono i maggiori risparmi se si confrontano affitto e pagamenti del mutuo.
A livello nazionale, il pagamento medio dell'affitto è di $2,063 al mese, mentre il pagamento medio del mutuo è di $1,827, con un risparmio mensile di $236 per i proprietari di casa. Tuttavia, è importante considerare costi aggiuntivi come tasse, assicurazione e manutenzione sia per l'affitto che per l'acquisto di una casa.
Zillow Home Loans ha introdotto un nuovo strumento chiamato BuyAbility, che aiuta i potenziali acquirenti a determinare la propria capacità di acquisto e la probabilità di pre-approvazione del mutuo. Con le scorte aumentate del 22% rispetto all'anno scorso, i compratori stanno guadagnando potere contrattuale nel mercato attuale.
Según un nuevo análisis de Zillow Home Loans, los pagos mensuales de hipoteca son más baratos que el alquiler en 22 de las 50 principales áreas metropolitanas de EE. UU. Recientes caídas en las tasas de interés hipotecarias han reducido significativamente los pagos mensuales, haciendo que la propiedad de vivienda sea más alcanzable en ciertas áreas. Nueva Orleans, Chicago y Pittsburgh ofrecen los mayores ahorros al comparar el alquiler con los pagos de la hipoteca.
A nivel nacional, el pago medio de alquiler es de $2,063 al mes, mientras que el pago medio de la hipoteca es de $1,827, lo que resulta en un ahorro mensual de $236 para los propietarios de vivienda. Sin embargo, se deben considerar costos adicionales como impuestos, seguros y mantenimiento tanto para el alquiler como para la propiedad de vivienda.
Zillow Home Loans ha introducido una nueva herramienta llamada BuyAbility, que ayuda a los compradores potenciales a determinar su capacidad de compra y la probabilidad de preaprobación de la hipoteca. Con un aumento del 22% en el inventario en comparación con el año pasado, los compradores están obteniendo poder de negociación en el mercado actual.
새로운 Zillow Home Loans 분석에 따르면, 월별 모기지 지불 금액이 렌트보다 저렴하다는 결과가 50대 도시 중 22곳에서 나타났습니다. 최근 모기지 금리의 하락으로 월별 지불금이 현저히 감소하여 특정 지역에서 주택 소유가 더욱 수월해졌습니다. 뉴올리언스, 시카고 및 피츠버그는 렌트와 모기지 지불을 비교할 때 가장 큰 절약을 제공하고 있습니다.
전국적으로 평균 렌트 비용은 $2,063이며, 평균 모기지 지불금은 $1,827로, 주택 소유자는 월 $236 절약을 얻고 있습니다. 그러나 렌트와 주택 소유 모두에 대해 세금, 보험 및 유지 관리와 같은 추가 비용을 고려해야 합니다.
Zillow Home Loans는 BuyAbility라는 새로운 도구를 도입했습니다. 이 도구는 예비 구매자가 자신의 주택 구매 능력과 모기지 사전 승인 가능성을 판단하는 데 도움을 줍니다. 재고가 지난해 대비 22% 증가하면서 구매자들은 현재 시장에서 협상력을 얻고 있습니다.
Selon une nouvelle analyse de Zillow Home Loans, les paiements mensuels d'hypothèque sont moins chers que le loyer dans 22 des 50 plus grandes métropoles américaines. Des baisses récentes des taux d'hypothèque ont considérablement réduit les paiements mensuels, rendant la propriété plus accessible dans certaines zones. La Nouvelle-Orléans, Chicago et Pittsburgh offrent les plus grandes économies lorsqu'on compare les loyers aux paiements hypothécaires.
Au niveau national, le loyer moyen est de $2,063 par mois, tandis que le paiement hypothécaire typique est de $1,827, ce qui donne un économies mensuelles de $236 pour les propriétaires. Cependant, des coûts supplémentaires tels que les taxes, les assurances et l'entretien doivent être pris en compte tant pour la location que pour la propriété.
Zillow Home Loans a introduit un nouvel outil appelé BuyAbility, qui aide les acheteurs potentiels à déterminer leur capacité d'achat et la probabilité de pré-approbation de leur hypothèque. Avec une augmentation de 22 % des stocks par rapport à l'année dernière, les acheteurs gagnent du pouvoir de négociation sur le marché actuel.
Laut einer neuen Analyse von Zillow Home Loans sind die monatlichen Hypothekenzahlungen günstiger als Mieten in 22 der 50 größten US-Metropolen. Kürzliche Rückgänge der Hypothekenzinsen haben die monatlichen Zahlungen erheblich gesenkt, wodurch der Hausbesitz in bestimmten Regionen erreichbarer wird. New Orleans, Chicago und Pittsburgh bieten die größten Einsparungen im Vergleich zwischen Miete und Hypothekenzahlungen.
National liegt die durchschnittliche Mietzahlung bei $2,063 pro Monat, während die durchschnittliche Hypothekenzahlung bei $1,827 liegt, was monatliche Einsparungen von $236 für Hausbesitzer zur Folge hat. Es sollten jedoch auch zusätzliche Kosten wie Steuern, Versicherungen und Wartung sowohl für das Mieten als auch für den Hausbesitz berücksichtigt werden.
Zillow Home Loans hat ein neues Werkzeug namens BuyAbility eingeführt, das potenziellen Käufern hilft, ihre Wohnfähigkeit und die Wahrscheinlichkeit einer Hypothekenvorabgenehmigung zu bestimmen. Mit einem Anstieg des Bestands um 22 % im Vergleich zum letzten Jahr gewinnen Käufer im aktuellen Markt Verhandlungsmacht.
- Mortgage payments are lower than rent in 22 of the 50 largest U.S. metros
- Potential monthly savings of $236 nationally by owning rather than renting
- New Orleans, Chicago, and Pittsburgh offer the greatest savings for homeowners
- Home inventory is up 22% compared to last year, giving buyers more bargaining power
- Introduction of BuyAbility tool to help buyers determine home affordability
- Homeowners must consider additional costs such as taxes, insurance, and maintenance
- A 20% down payment is required for the mortgage payment calculations, which may be a barrier for some buyers
- Rent prices are still climbing, with a 3.4% increase compared to last year
Insights
The shift in affordability dynamics between renting and buying homes in major U.S. metros is a significant development for the real estate market. With mortgage payments falling below rent in 22 of the 50 largest metros, this could potentially stimulate home buying activity. The $236 monthly savings at the national level for owning versus renting is substantial, potentially freeing up
This data reveals a fascinating shift in the housing market dynamics. The fact that buying is cheaper than renting in 44% of major metros could trigger a significant change in consumer behavior. Cities like New Orleans, Chicago and Pittsburgh, offering monthly savings of
This analysis presents a nuanced view of the housing market. While the headline suggests increased affordability, it's important to consider the full picture. The 20% down payment assumption is a significant hurdle for many, especially first-time buyers. Additionally, the analysis doesn't account for property taxes, insurance and maintenance costs, which can substantially increase the true cost of ownership. The trend of 1 in 4 sellers cutting prices and increased inventory suggests a market correction, potentially offering opportunities for buyers. However, this could also indicate a softening market, which might concern current homeowners or those considering selling. The geographic variations are stark, with cities like New Orleans offering significant savings for buyers, while other markets still favor renting. This disparity could drive migration patterns and impact local economies. For long-term investors, the potential for equity buildup through homeownership remains a compelling argument, especially in markets where buying is significantly cheaper than renting.
Zillow Home Loans' new BuyAbility tool is a quick way to determine if homeownership is within reach, and if it's possible to secure a mortgage that costs less than rent
In
This trend also holds true across the
"This analysis shows homeownership may be more within reach than most renters think," said Zillow Home Loans Senior Economist Orphe Divounguy. "Coming up with the down payment is still a huge barrier, but for those who can make it work, homeownership may come with lower monthly costs and the ability to build long-term wealth in the form of home equity — something you lose out on as a renter. With mortgage rates dropping, it's a great time to see how your affordability has changed and if it makes more sense to buy than rent."
Beyond monthly rent or mortgage payments, there are additional costs for both renting and homeownership that must be considered. Homeowners pay taxes, insurance, and utilities on a monthly basis, and should be prepared for ongoing maintenance costs. Renters also typically need insurance, and will often pay extra for parking, pets, and utilities.
There are pros and cons to both buying and renting, but generally, the longer you plan to stay in your house, the more financial sense it makes to buy. Mortgage payments can decrease over time by paying off private mortgage insurance or refinancing your loan at a lower rate, whereas rent payments have the potential to increase at each lease renewal. Beyond that, mortgage payments build homeowners' equity in their house — increasing their financial stake in their home as time passes.
Rent growth has come down from pandemic-era highs and returned to long-run norms, but prices are still climbing. The typical rent is
One easy way for buyers to see if their potential mortgage payment is cheaper than their rent is to use BuyAbility, a new tool from Zillow Home Loans. BuyAbility quickly gives prospective home buyers an idea of how much they can afford and their likelihood of getting pre-approved for a mortgage. Buyers can check in with BuyAbility regularly on the Home Loans tab on Zillow's app to see how their estimate changes with current mortgage rates or a change to their credit score.
Metro Area | Typical Rent Payment | Typical Mortgage Payment | Monthly Savings |
Virginia Beach | |||
Buffalo |
1 Analysis used Zillow data to compare the cost of a monthly mortgage payment to the typical rent payment among the 50 largest |
2 Assuming a |
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Other costs on both sides. Taxes, insurance, maintenance, utilities. For renters – may be charged extra for parking, pets, potentially utilities. The longer you plan to stay in your house, the more sense it makes to buy. Mortgage payments are relatively fixed, whereas rent payments have the potential to increase at each lease renewal.
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SOURCE Zillow Home Loans
FAQ
In which U.S. cities are mortgage payments lower than rent according to Zillow (Z)?
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What is the BuyAbility tool introduced by Zillow Home Loans (Z) in September 2024?
How has the home inventory changed compared to last year, according to Zillow's (Z) September 2024 report?
