The newly published 2023 Rental Affordability Report from ATTOM found the average three-bedroom rent is more affordable than owning a comparably sized median-priced home in 210 of the 222 U.S. counties analyzed for the report, or 95% of the national market.
While renting and owning a three-bedroom home can consume more than one-third of average wages in most major housing markets, ATTOM determined that average rents still require a significantly smaller portion of wages than major home-ownership expenses on three-bedroom properties. This comes even though rents have risen faster than home prices over the past year in roughly half the nation.
“What a difference a year makes,” said Rick Sharga, executive vice president of market intelligence for ATTOM. “Last year our study concluded that it was more affordable to own than to rent in 60% of the markets analyzed. But with mortgage rates doubling, monthly payments for new homeowners rose by 45% to 50% compared to a year ago, even though home price appreciation has slowed down dramatically. This has made renter more affordable in the majority of markets, despite rental rates continuing to rise over the past year.”
