A recent study conducted by ATTOM Data reported that from 755 counties in the US, Maricopa County, the median price for a home last year from January to November was $275,000. The average rent for a three-bedroom home was $1,319. ATTOM’s analysis comes shortly after a report late last year finding that Phoenix has the second-fastest growing rental rates in the nation.
ATTOM analyzed data from 755 counties in the United States, including average rent prices from the U.S. Department of Housing and Urban Development and average weekly wages collected by the U.S. Department of Labor. Home prices came from ATTOM’s own databases.
To find rental affordability, ATTOM calculated the average rent for a three-bedroom home as a percentage of the average monthly wage. For home-buying affordability, the company determined the average monthly house payment for a median-priced home as a percentage of monthly wage.
The results are grim for folks who might be considering buying a home, especially in big cities. Renting is more affordable than buying in the nation’s 18 biggest counties and 37 of 40 counties with a population of 1 million or more, according to ATTOM. Of the 755 U.S. counties analyzed, 59 percent have more affordable rental rates when compared with house payments.
Jennifer von Pohlmann, director of content and PR at ATTOM Data Solutions, said in a statement: “With home price appreciation increasing annually at an average of 6.7 percent in those counties analyzed for this report and rental rates increasing an average of 3.5 percent, coupled with the fact that home prices are outpacing wages in 80 percent of the counties, renting a home is clearly becoming the more attractive option in this volatile housing market.”
In Arizona, only Pinal, Cochise, and Yuma counties are listed as having better house-buying affordability. Among the counties in which renting is more affordable than buying: Maricopa, Pima, Coconino, Yavapai, Gila, Navajo, Pinal, and Mohave.
In Maricopa County, the median price for a home last year from January to November was $275,000. The average rent for a three-bedroom home was $1,319.
More affordable doesn’t necessarily mean affordable. ATTOM’s analysis comes shortly after a report late last year finding that Phoenix has the second-fastest growing rental rates in the nation. While Phoenix once ranked high on the cities with relatively affordable homes, the metro area is gradually sliding down that list.
And more affordable doesn’t necessarily mean it’s always the best option. For people who want to plant roots in Phoenix, home ownership could be the best bet with housing prices in the metro area steadily appreciating in the past few years.
Renting a three-bedroom home in the Phoenix metro area is generally more affordable than buying a median-priced home, according to a new report.
And it’s not just Phoenix. It might be a better option for Arizonans to rent over buying in seven of the 10 counties analyzed by ATTOM Data Solutions, a property data management company.