Tags: home | prices | rent | buy

NYT: Soaring Home Prices Make Renters Out of Buyers in Some Cities

By    |   Thursday, 22 May 2014 01:31 PM

Home prices are soaring in many of the nation's major cities, and that is pushing people to rent homes rather than buy them.

Home prices jumped 12.9 percent in the year through February in the S&P/Case-Shiller index for 20 major cities.

"A lot of these coastal markets look overvalued compared to rents," Mark Zandi, chief economist at Moody's Analytics, told The New York Times. "In these markets, it seems generally more attractive to rent than to buy, even as the national market is broadly well balanced."

Editor's Note:
Free Video — ‘Rogue Calendar’ Could Turn 490% Profits


The Times calculates that for a typical person deciding whether to buy a $500,000 house in which he/she will live in for seven years, renting might be a superior alternative if a similar home can be had for $1,956 a month or less.

To be sure, buying still makes sense in much of the country.

"But across much of California and the Northeast, prices are now high enough that the costs of owning a home — property taxes, repairs, fees to real-estate agents and mortgage interest — may outweigh the financial benefits, including the tax break," wrote The Times' Neil Irwin.

The Wall Street Journal offered several tips on figuring out whether to rent or buy.

You'll want to determine your monthly costs for each scenario, the paper says. That includes rent, mortgage payments, taxes, insurance and other applicable expenses.

"The verdict could differ considerably within a city, suburb or town, based on the location and the style and size of the homes you are exploring," according to The Journal.

Editor's Note: Free Video — ‘Rogue Calendar’ Could Turn 490% Profits

© 2020 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
StreetTalk
Home prices are soaring in many of the nation's major cities, and that is pushing people to rent homes rather than buy them.
home, prices, rent, buy
275
2014-31-22
Thursday, 22 May 2014 01:31 PM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved