Roofstock Research’s Post

Great analysis by Roofstock Research examining the cost differential between buying a single-family home and renting one.

Another great research piece by Paul Briggs, CRE 🎉 On a personal note, as I get asked every single day if NOW is the best time to purchase a home. The answer is probably be really depending the homebuyers' personal situation. The best time to purchase will always be when he/she is ready. However, if we are STRICTLY having a discussions based on numbers only, my answer will be absolutely NOT unless you are planning to stay in your home within the next 20-30 years. As of now, the cost to rent within the next couple years is considered cheaper comparing to the cost to purchase for most people because the interest rate (combining with the annual maintenance cost) is so high.

For years, owning a home was often seen as more affordable than renting—but the tides have shifted. The data is clear: renting is currently cheaper than owning, and here’s why: ➡ Mortgage rates are soaring: With interest rates climbing, monthly payments for homeownership have spiked dramatically. ➡ Home prices remain high: The median price for a new home in September was $426,300—nearly 30% higher than in 2019. ➡ Builders offering incentives: Even with discounts and rate buydowns, affordability challenges persist. The graph shows the Monthly P&I (Principal & Interest) to Rent Ratio, highlighting how renting has become the more cost-effective option since 2022. To break even, single-family mortgage rates would need to drop by 150 basis points, which doesn’t seem likely in the short term. As renting remains the more affordable choice, it’s also worth noting the opportunities this creates for multifamily real estate investors. Increased demand for rentals means steady cash flow and solid returns for those in the market. The question is: How are you planning to capitalize on this shift? #realestateinvesting #housingmarket #multifamilyinvesting #rentvsown #investmentopportunities #cpicapital

Think about the consequences of investors buying up residential property. Houses which would otherwise be perfect starter homes for first-time homebuyers instead turn into Airbnb sites, expensive rental properties, or at best, are flipped for twice the price after a cosmetic touch-up. Then what? How many aspiring first-time homebuyers are currently being denied their opportunity to become homeowners? Those are people who won't be refinancing their purchase-money mortgage in five years. They won't be selling their starter home and moving to a bigger place in ten years. They won't start building equity for a long time yet. The intrusion of large-scale real estate investors into the residential housing market is bad news for the economy and for the title insurance industry no matter which way you cut it. #realestate #investing #invest #realestateinvesting #realestateinvestment #housing #housingmarket

For years, owning a home was often seen as more affordable than renting—but the tides have shifted. The data is clear: renting is currently cheaper than owning, and here’s why: ➡ Mortgage rates are soaring: With interest rates climbing, monthly payments for homeownership have spiked dramatically. ➡ Home prices remain high: The median price for a new home in September was $426,300—nearly 30% higher than in 2019. ➡ Builders offering incentives: Even with discounts and rate buydowns, affordability challenges persist. The graph shows the Monthly P&I (Principal & Interest) to Rent Ratio, highlighting how renting has become the more cost-effective option since 2022. To break even, single-family mortgage rates would need to drop by 150 basis points, which doesn’t seem likely in the short term. As renting remains the more affordable choice, it’s also worth noting the opportunities this creates for multifamily real estate investors. Increased demand for rentals means steady cash flow and solid returns for those in the market. The question is: How are you planning to capitalize on this shift? #realestateinvesting #housingmarket #multifamilyinvesting #rentvsown #investmentopportunities #cpicapital

Seeing more rental properties built everywhere is a troubling sign…   Rising real estate prices and high interest rates pose significant challenges for first-time homebuyers. The result is a record number of rental properties being built, higher rental prices, and a decreased ability to save for a down payment on a house.   Homeownership isn’t for everyone…but the landlord is now replacing the bank for younger folks, and there is no equity at the end of 15, 20, or 30 years. “Developers are building new houses for rent at an unprecedented rate, aiming to capitalize on the steep home prices and higher mortgage rates that are forcing many Americans to keep renting. In 2023, 93,000 new single-family homes for rent were completed, according to estimates from housing consulting firm John Burns Research and Consulting. That was 39% more rental homes than in 2022, and the most in any year ever. The breakneck pace is poised to continue this year before easing by 2025.” #rentalproperties #firsttimehomebuyers #personalfinance

Are we preparing for another challenging year in the housing market? As we look ahead to 2025, it appears mortgage rates may remain stubbornly high, hovering around 6% to 6.8%. This situation poses a double challenge for homebuyers, especially for those trying to balance rising rates with escalating home prices that have outpaced wage growth over the last decade. More than 80% of existing homeowners with mortgages are holding rates below 6%. For many sellers considering a move, the prospect of trading their low rate for a higher one may deter them from listing their homes. However, it’s crucial to recognize the potential opportunities amid these challenges. Homebuyers who are not confined by interest rates—such as those leveraging home equity gains—may discover a wider selection of available properties due to an increase in listings. Furthermore, slowing price growth could provide some relief for prospective homeowners. As real estate professionals, we must help our clients navigate these turbulent waters by emphasizing long-term value and potential market shifts that could benefit them. #HousingMarket #MortgageRates #RealEstate #HomeBuying #MarketTrends #FloridaRealtor

As we look ahead to 2025, the housing market is showing promising signs! With existing-home sales projected to increase by 7-12% and new home sales expected to rise by 11%, now is the time to consider your real estate options. The median home price nationwide is anticipated to reach $410,700, reflecting a modest 2% increase. Want to know Acadiana's numbers? Let's chat! Plus, mortgage rates are stabilizing around 6%, making homeownership more accessible. With a growing inventory and favorable market conditions, whether you're buying or selling, Bobbi Comeaux is here to guide you through the process with expertise and a personal touch. Let's make your property dreams a reality! Explore more insights on the 2025 housing outlook in the full article. Read more here: https://lnkd.in/gvvGE5rn #RealEstate #HousingMarket #HomeBuying #YourRealtorInTheKitchen #DreamHome2025 #HomeInvestment #RealEstateTrends #FutureOfHousing #PropertyGoals #HomeOwnership

Good news for Housing Providers: For years, the costs of renting and owning were relatively in sync. That changed in 2021 when the cost of home buying started to skyrocket. And unlike many pandemic-era trends that have since reverted to the norm, this particular one is here to stay “for some time,” according to CBRE. “With average mortgage payments 38% higher than average apartment rents as of year-end 2023, many U.S. households are continuing to rent rather than buy a home,” they wrote. “Even though the premium to buy a home may come down over the next several years based on home-price, interest-rate and rent-growth forecasts, it is expected to remain high enough to keep today’s renters renting for longer.” https://hubs.la/Q02qQ24F0

🏡 Is Home Ownership Within Reach for the Average Ottawa Household? Let’s Break It Down! As of September 2024, the average price for a single-family home in Ottawa is around $732,500 (wowzer). With the average household income in Ottawa at approximately $120,000, let’s see how this stacks up for potential home buyers: With a 30-year mortgage at a 6% interest rate, your monthly mortgage payment would be about $4,300, not including property taxes, utilities, and other costs. Since mortgage payments are made with after-tax dollars, you'd need to earn roughly $6,140 gross per month to cover this payment. Over the 30-year period, the total cost of the house before taxes would be about $1.58M, but to fully cover this with after-tax income, you’d need to earn approximately $2.26M in gross income (double wowzer). For the average Ottawa household, home ownership is still a big commitment, but it’s achievable with proper planning! Let’s work together on a strategy that aligns with your financial goals and makes homeownership more attainable. 📞 Reach out today to get started! #financialplanning #ottawarealestate #homeownership #mortgageadvice #SmartInvesting #FinancialFreedom