RealtyTrac Reports Mortgages More Affordable than Rent

This month, RealtyTrac released a Residential Rental Property Analysis, which found that in 76 percent of U.S. counties, monthly house payments were more affordable than monthly fair market rents on three-bedroom properties purchased in first quarter 2015.

Overall the report found that buying is much cheaper than renting, and not just in the long-term.

Courtesy of RealtyTrac.  

Courtesy of RealtyTrac.

 

“From a pure affordability standpoint, renters who have saved enough to make a 10 percent down payment are better off buying in the majority of markets across the country,” said Daren Blomquist, vice president at RealtyTrac. “But factors other than affordability are keeping many renters from becoming buyers, a reality that means real estate investors buying residential properties as rentals still have the opportunity to make strong returns in many markets.”

The report ranks the best and worst markets for potential returns on residential rental properties from a real estate investor standpoint.

Markets with the highest potential annual gross rental yields for homes purchased in February 2015 were Baltimore City, Maryland (24.82 percent), Clayton County, Georgia in the Atlanta metro area (24.26 percent), Wayne County, Michigan in the Detroit metro area (21.08 percent), Pasco County, Florida in the Tampa-St. Petersburg metro area (19.20 percent), and Trumbull County, Ohio in the Youngstown metro area (18.36 percent). Read more.