Mortgage Cost Surge Makes It Cheaper to Rent in Tough US Market
The gap in favor of renting hasn’t been this big since at least 2015, according to Zillow.
The Renaissance at Allendale apartment complex in Shreveport, Louisiana.
Photographer: Christiana Botic/BloombergThis article is for subscribers only.
It’s getting even harder to afford a house.
In high-cost US housing markets including Los Angeles, Honolulu, Seattle, San Jose and San Francisco, the premium for buying versus renting is surging, according to Zillow Group Inc. In California’s San Jose metro area, for instance, where the typical home costs $1.4 million, a buyer with 10% down faces a monthly mortgage payment of $8,771, more than $5,000 higher than monthly rent.