The latest Beracha, Hardin, & Johnson Buy vs. Rent Index supports the belief that housing markets nationwide remain a sound investment and reports that the U.S. housing market has continued to move deeper into buy territory. This quarterly report aims to inform its readers whether it is better to buy or rent a home in today's housing market. The index does this by examining the entire U.S. housing market, then isolating 23 major cities for comparison. Ken Johnson, one of the Index's authors, Ph.D., and Real Estate Economist and Professor at Florida Atlantic University explained that,"Housing prices, in general, continue to slow and when considered in light of the recent trends in the Buy vs. Rent index signal that ownership remains an excellent investment for the majority of Americans." For more information on why buying is much more financially appealing, view one of our earlier blogs about the net worth of homeowners vs. the net worth of renters.
The index shows that while 15 of the 23 housing markets of major cities have moved further into buy territory since last quarter, some major cities including Dallas, Denver, and Houston remain in rent territory. In these markets, it is estimated that renting will top homeownership 70% of the time. However, Eli Beracha, Ph. D. and Assistant Professor in the T&S Hollo School of Real Estate at FIU, believes that home prices in these areas will begin to return to normal levels as residents realize that it currently may be better financially to rent. Therefore, home affordability in these areas will be restored.
For the majority of our nation, it is more financially and socially sound to become a homeowner rather than a renter. If you are ready to own your dream home in Greenwood, you can protect yourself from rising rents by locking in your housing cost with a mortgage payment now. For more information on the current Greenwood Housing Market or any aspect of real estate, please browse our website or contact us at (864)341-7774 or lakegreenwoodproperty.com.
