A new report argues that renting a three-bedroom property is more affordable than buying a median-priced home in the vast majority of Colorado counties surveyed. The report drew from newly released fair-market rent data for 2019 gathered by the U.S. Department of Housing and Urban Development, as well as wage figures from the Bureau of Labor Statistics and public-record sales-deed info assembled by ADS researchers.
But readers were skeptical.
No, it isn't, renting is throwing your money away.
Fake news. Do tell how renting a 2-bed, 2.5-bath townhome for $1,900 a month is better than a mortgage at $1,500 a month for a 5-bedroom house?
Yeah, I wish I rented my house in 2012 instead of buying. I’m paying $1,100 in a mortgage but could have held out and been paying $1,900 to rent. The house has doubled in value, but I wish this ridiculous article had come out first and given me advice.
But John says:
I own a home, but if I were a first-time buyer I would think twice unless I had the skills to fix something up. If you can buy now (right now) and get the best rate, you'll be fine.
And Bianca adds:
After what we’ve been through with our little house, we’ve been feeling this. Just gotta trust that owning a home is worth it in the end.
When your rent cost becomes the same cost as a mortgage, is it still wise to rent and receive nothing in return; i.e., real estate appreciation? We were renting when we first moved back to Denver, but eventually our rent cost became almost equal to our current mortgage payment. Now I have $100 to $150K in equity built up and trending to stay on the rise.
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The information for the study was gleaned from data assembled for the "2019 Rental Affordability Report" and supplied to Westword by ATTOM Data Solutions. It crunched the numbers related to 755 counties across the country, drawing from newly released fair-market rent data for 2019 gathered by the U.S. Department of Housing and Urban Development, as well as wage figures from the Bureau of Labor Statistics and public-record sales-deed info assembled by ADS researchers.
Among the major takeaways: Renting is more affordable than buying in 442 of the counties studied, or 59 percent of the total, partly because of fast-rising real estate costs. Home prices were found to be outpacing wages in 80 percent of housing markets in the United States.
The situation is even more extreme in Colorado. Seventeen counties were included in the report. Of those, buying was a better deal than renting in only two, or just under 13 percent — making renting cheaper in more than 87 percent of the Colorado counties.
Do you think renting in Colorado is more affordable than owning? Let us know in a comment or at firstname.lastname@example.org.