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IPFS News Link • Housing

Visualizing The Monthly Cost Of Buying Vs Renting A House In America

• https://www.zerohedge.com by Tyler Durden

Americans, however, have seen similar scenarios occur since the early 1980s.

Visual Capitalist's Bruno Venditti and Sam Parker created the following chart, using data from Reventure Consulting, to highlight the cost of buying vs. renting a single-family residence in the U.S. since 1970, adjusted for inflation.

Mortgage Rates Jump to New High

In August 2023, mortgage rates rose to the highest level in 23 years, with the national average 30-year fixed mortgage hitting 7.48%.

As a result, the median rent in America is approximately $1,850 per month, about 30% cheaper than the median cost to buy, standing at $2,700 per month. This gap represents the largest difference between renting and buying in U.S. history.

While the difference was less than $200 in 2022, in 2023 the gap surpassed $800.

Many buyers, particularly those seeking their initial home purchase, have now been priced out of the market with concerns that they cannot afford home ownership. As a result, mortgage applications for home purchases have hit their lowest point in 20 years:


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