Trulia has calculated average rent vs. sales price across the US. They then factored in the costs of home ownership such as closing costs, maintenance, insurance, and taxes,, adding the total cost of renting including renter’s insurance and security deposit.
According to the study, there are still significant own-to-rent discounts in Greater Boston, even in our growing housing market. Findings show that it will cost home buyers on average of 29% less per month to own vs. rent.
Given that today’s lending standards remain stringent compared to the housing bubble peak, many would-be home owners still remain on the sidelines which has buoyed the multifamily sector.
Any sizable uptick in mortgage rates could also chip away at the ownership advantage.