Two Charts That Show the Realities Facing Homeowners and Renters
Ellen Tsay, of New York City, had been thinking about buying a home for a while, but she finally made the jump this year when she realized a mortgage payment would be “basically” the same as her rent cost.
“I’m luckier than a lot of people in that my rent prices haven’t increased as dramatically each year as I’ve heard for others,” Tsay, who works in the technology industry, says. “But because this is New York, my rent is still high, and I know it’s never going to be lower.”
Regardless of whether you rent or buy, you’ll be paying more to do so, according to second quarter data released by the Census Bureau, which also shows the homeownership rate in the U.S. is at the lowest level in more than 50 years.
Less for More
A chart from the Census Bureau shows how rental asking prices have continued to rise through the last two recessions. Meanwhile, home sale asking prices, which have been rising this year, are recovering from the major drop during the last recession.