Buying is still cheaper than renting in Boston
After all the reports of sky-rocketing condo prices in Boston it may come as a surprise to read that buying is still cheaper than renting in Boston, but that is the statistically-based claim made in the Buy vs Rent Index produced by Florida Atlantic University and Florida International University.
Here is the chart for Boston:
The BH&J Index “measures the relationship between purchasing property and building wealth through a buildup in equity versus renting a comparable property and investing in a portfolio of stocks and bonds.” It examines the entire housing market in the United States and isolates the markets of 23 key cities.
“The increasing cost of renting relative to the cost of ownership, the unsteady performance of the stock market and the continuation of incredibly low mortgage financing are creating an environment in which the majority of U.S. housing markets are in buy territory.”
When reading about increases in housing prices it is easy to forget that renting, the alternative to buying, is also becoming more expensive, as this chart of data from Rent Jungle demonstrates:
One market that is not in buy territory is Houston. With the collapse in oil prices in the last year, I am not sure I would be a buyer of real estate in Houston based upon this chart:
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
You can REGISTER to receive email alerts of new posts on the right hand side of the home page at www.OliverReports.com.