n*********e
发帖数: 25274 | 1 5 housing markets where renting beats owning
In theory, plummeting home prices and record-low interest rates should make
buying a home cheaper than renting one. But experts say in some parts of the
country, it still pays to be a tenant.
Despite the incentives to buy now, including record-low interest rates and
depressed prices, sales of single-family existing homes slipped 1.5% in May
from a month earlier, according to data from the National Association of
Realtors.
The drop, which came during the historically busy spring season, suggests
the housing market has a way to go to recover. If anything, the ranks of
American homeowners are dwindling. The homeownership rate in the U.S. fell
slightly from 66% to 65% during the first quarter of 2012—the lowest in 15
years, according to the latest data by the U.S. Census. (It peaked at just
over 69% in 2004.)
Renters, meanwhile, have more inventory to choose from as owners who are
unable to sell their homes often have no choice but to find tenants, says
Dan McCue, research manager at Harvard University’s Joint Center for
Housing Studies. The number of single-family homes for rent or being rented
grew by two million units from 2006 to 2010, according to a JCHS report
released this month, and McCue says the number has likely grown since then.
“One third of all rentals are single-family homes,” he says.
On the national level, it is cheaper to buy than rent, according to a March
2012 report by Deutsche Bank—even after taking into account the down
payment and property taxes. But in some areas, including California and the
Northeast, renting remains more affordable than buying. The report
identified 13 cities where renting costs less than the after-tax mortgage
payment (that’s the mortgage expenses the owner incurs, along with the
mortgage interest deduction they get come tax season).
To be sure, as rents continue to rise, the savings associated with renting
could be wiped away: Asking rents are up 2% year over year nationally, and
they’re expected to rise 4% this year, according to Reis, which tracks
rental-performance data.
Still, the growing market for single-family home rentals is benefiting both
landlords and renters. For landlords, renting could be a way to generate
income or to cover the expenses of a property that would otherwise be vacant
, says Leonard Baron, principal at LPB Services, a real estate consulting
firm in San Diego, Calif.
For renters in markets where sale prices remain high, single-family homes
offer access to communities with top-ranked school districts, spacious homes
, backyards, and private golf courses. The costs of being a renter are often
$500 to $1,000 less per month than purchasing. Renters also have the
benefit of mobility: they don’t have to wait to sell the home to leave and
they’re not impacted if its value drops, says Brad Hunter, chief economist
at Metrostudy, a housing market research and consulting company.
Here are five markets where housing experts say renting may be more
affordable than owning.
Northern New Jersey
A close commute to New York City and home to some of the top-rated schools
in the state, northern New Jersey’s desirable real estate remains out-of-
reach for many house hunters. Last year, median-income households would have
needed a 24% raise to afford purchasing a single-family home, according to
the latest metro data by the NAR. Nationally, median households had nearly
double the money they needed to buy a home.
Residents pay $529 extra in mortgage payments on average than they do in
rent, according to Marcus & Millichap, a real-estate investment brokerage
firm. Owners also pay high property taxes: Bergen and Essex counties, both
in north N.J., are among the most expensive areas for property taxes in the
U.S., charging a median $8,200 to nearly $9,000, according to 2009 data (the
latest available) from the Tax Foundation. (National median property taxes
were $1,917.)
In some cases, sellers who are trying to unload their homes are also
offering them for rent at a cheaper cost. In Ho Ho Kus, N.J., a nearly 11,
000-square-foot home is on sale for $754,000, but it’s also up for rent at
$3,700 a month. A buyer who makes a 10% down payment and signs up for a 30-
year mortgage at a 3.7% rate would pay $3,123 a month on the loan in
addition to nearly $11,000 in property taxes for a total of about $4,020 a
month.
In Englewood Cliffs, about a 15-minute drive from Manhattan, a four-bedroom,
three-bath single-family home is listed for sale at $699,000 and for rent
at $3,000 a month. Under the same terms, an owner would pay about $3,410 a
month on the mortgage payment and property taxes.
Long Island, New York
Long Island homes, in particular those in exclusive communities in Nassau
County’s north shore, remain out of reach for most people for two reasons:
Their asking prices are about 24% higher than the typical household’s gross
income; and Nassau County property taxes are the second highest in the
country, at a median of $8,940, according to the Tax Foundation. In some
areas, taxes are closer to $20,000 a year.
As a result, properties have been lingering on the market: In Long Island’s
Nassau and Suffolk counties, homes were on the market for a median of 97
days last month, compared with 83 days on a national level, according to
Realtor.com. Though there’s no official data, experts say more homes are
being offered for rent in areas where it was previously a rarity. In Old
Westbury, among the smallest homes for rent is a four bedroom, 2.5 bath that
goes for $3,500 a month. For-sale homes start at $858,000 and property
taxes start around $13,800, for monthly expenses that start at around $4,350
.
Further west is the town of Manhasset Hills, a 25-minute drive to Manhattan,
that’s surrounded by private golf courses, pools and other amenities. A
small number of single-family homes recently became available for rent that
offer a cheaper way into the neighborhood. A five-bedroom, three-bath ranch
is renting for $3,950. A similar property is selling for $729,000 and has
annual property taxes of nearly $18,000 that (with a 10% down payment)
result in a monthly payment of about $4,500.
California
Among all states, California has the most counties where renting is more
affordable than owning. In San Francisco, the gap between average monthly
rents and mortgage payments is the largest nationwide, with homeowners
paying $1,259 more each month than renters, according to Marcus & Millichap.
Last year, median-income households in the San Francisco metro area had
just 66% of the income they needed to purchase a typical single-family home,
according to the NAR.
In the Richmond district in San Francisco, rents for single-family three-
bedroom-plus homes start at $4,800. Similar homes for sale have asking
prices that start at about $1.2 million and property taxes starting around $
6,800. Assuming a 20% down payment and an interest rate of 4.34% on a 30-
year mortgage (the typical down payment and average rate on large loans,
according to HSH Associates), monthly loan and tax payments total $5,345.
Down in San Jose, mortgage payments surpass rents by $1,050 per month on
average, according to Marcus & Millichap. Last year, median-income residents
had about half the money they needed to afford a typical home in the area,
the NAR says.
And in Orange County, monthly mortgage payments are $880 larger than monthly
rents, on average. In Laguna Beach, one of its more coveted beach-side
cities, rents for three-bedroom homes start at $1,850 per month while
monthly mortgage payments on for-sale homes (assuming a 10% down payment and
30-year mortgage) start at about $2,900.
Seattle
Average monthly rents in Seattle are $377 lower than mortgage payments,
according to Marcus & Millichap. Last year, median-income households needed
their gross income to be about 5% higher in order to afford purchasing a
typical single-family home in the area, according to the NAR. While the cost
difference isn’t too large, experts say some regions remain renter
favorites.
In south Seattle, in the neighborhood of Dunlap, a four-bedroom, 2.5-bath
home rents for $1,995 while a comparable home that’s a three-minute walk
away sells for $995,000 at what would amount to a monthly mortgage payment
of roughly $4,000 assuming a 20% down payment. Over in northern Seattle, in
Maple Leaf, a five-bedroom home on 94th Street rents for $2,200 a month
while a home that’s a few avenues over sells for $745,000; with a 10% down
payment, monthly loan payments cost about an extra $1,000 to own this house
than to rent the nearby one.
Residents looking for a suburban feel in an area close to the city center
may also find renting to be cheaper than buying in Green Lake, which is
located by Seattle’s 324-acre Green Lake Park. Here, a three-bedroom, two-
bath, 1,800-square-foot home rents for $1,795 a month. A similar-sized home
sells for $515,000. A borrower who makes a 10% down payment and gets a 30-
year mortgage at 3.7% will pay $2,130 per month.
Honolulu
Home to surfers and a business hub for corporate executives, Honolulu
remains extremely pricey for would-be homeowners. Hawaii’s state capital
has the least affordable home prices in comparison to income in the country:
Median household income is just 39% of what residents need in order to buy
a median-priced home, according to the NAR.
For the most part, the starting prices of homes for rent in Honolulu are
lower than those for sale. For instance, three-bedroom, two-bath homes rent
at a starting price of $1,100 per month while asking prices on most for-sale
homes start at $449,000; with a 10% down payment on a 30-year mortgage,
loan payments are at least $400 to $700 more per month.
In some pricier areas, homes are more affordable as rentals than as
purchases. In the northern part of Kaimuki (located in southeast Honolulu
near Diamond Head), homes rent for at least $2,400 a month while homes for
sale have asking prices that start at $819,000. With a 10% down payment,
monthly loan payments are at least $1,000 higher. | m****s
发帖数: 7397 | 2 You lost everyone at hello. | m****s
发帖数: 7397 | 3 Haha. I dont think so.
"
In Englewood Cliffs, about a 15-minute drive from Manhattan, a four-bedroom
, three-bath single-family home is listed for sale at $699,000 and for rent
at $3,000 a month. Under the same terms, an owner would pay about $3,410 a
month on the mortgage payment and property taxes.
" | s*****o
发帖数: 1540 | 4 老美的算术难道就是这样的？
租房 = 3000
买房 = 3400 + tax
所以租房比买房便宜？
究竟算不算买房的一部分月供其实支付房子本身的价值？
３０年之后，这个房子的主人只用交房产税，而租房的人一辈子都要交３０００块一个
月。
我的算法究竟是不是正确的，求指教。
bedroom
rent
【在 m****s 的大作中提到】
: Haha. I dont think so.
: "
: In Englewood Cliffs, about a 15-minute drive from Manhattan, a four-bedroom
: , three-bath single-family home is listed for sale at $699,000 and for rent
: at $3,000 a month. Under the same terms, an owner would pay about $3,410 a
: month on the mortgage payment and property taxes.
: "
| d****n
发帖数: 12461 | 5 是啊，文科生记者。
【在 s*****o 的大作中提到】
: 老美的算术难道就是这样的？
: 租房 = 3000
: 买房 = 3400 + tax
: 所以租房比买房便宜？
: 究竟算不算买房的一部分月供其实支付房子本身的价值？
: ３０年之后，这个房子的主人只用交房产税，而租房的人一辈子都要交３０００块一个
: 月。
: 我的算法究竟是不是正确的，求指教。
:
: bedroom
| c********n
发帖数: 731 | 6 When your tax payment is almost equal to your mortgage payment, that makes
owning house no sense. | j******w
发帖数: 4429 | 7 if by selling the house you can get tax payment back, it makes sense...
to rent a house you have a devalued money...
【在 c********n 的大作中提到】
: When your tax payment is almost equal to your mortgage payment, that makes
: owning house no sense.
| c********n
发帖数: 731 | 8 You are talking about heaven, US is the world and NJ is the hell. If you
move out of NJ after sale, you have to pay leave-state tax!
【在 j******w 的大作中提到】
: if by selling the house you can get tax payment back, it makes sense...
: to rent a house you have a devalued money...
| a****j
发帖数: 1277 | | a****j
发帖数: 1277 | |
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