Owning A Home Is Becoming Much More Expensive Than Renting One
A new report from Apartment List examines the “homeownership premium” – the gap in monthly housing costs for homeowners vs renters: Buying A Home Is Becoming Much More Expensive Than Renting One
This premium unlocks certain advantages for homeowners: building wealth through equity, protecting long-term housing security, accessing certain neighborhoods. But recently, homeowner costs have ballooned, and the premium is growing so large that many are revisiting the “rent v buy” decision.
The National Trend
Since 2020, not only have home prices increased dramatically, so too have interest rates, insurance premiums, property taxes, and maintenance costs. Meanwhile the rental market, as a whole, has been sluggish for the past three years. The homeownership premium is growing so quickly that many are rethinking the classic “rent v. buy” decision.
Today, the median monthly cost for new homeowners is $2,679, compared to $1,630 for new renters — a homeownership premium of 64%.
The Local Trend
This report includes data for the nation’s 100 largest housing markets, and homeowner costs exceed renter costs in every single one. In San Antonio specifically, the homeownership premium is 72%, or $1,036.
San Antonio homeowners typically spend $2,485 per month on housing, while renters spend $1,449.
You can explore the data using the interactive chart in our new report: Buying A Home Is Becoming Much More Expensive Than Renting One
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