Why rent when you can own? Once again, that is a viable question for prospective home buyers in most of the US. The results of a study covering real estate trends in over 380 markets were released in early August. The analysis was based on the Fiserv Case-Shiller Indexes, which are owned by Fiserv, a global firm that provides solutions within the realm of financial services technology.
Over the last six years, the rate of home ownership has dropped and the demand for rental properties has increased. That phenomenon has made the price of rent go up in most U.S. markets. The Fiserv study revealed that thanks to low mortgage rates and falling home prices, it is now cheaper to buy a house than rent an apartment in much of the nation. Further analysis led to the prediction that as housing markets gain stability, prospective homebuyers will realize the advantages of home ownership and the demand from first time homebuyers will increase. According to Fiserv, “Consequently, even if economic growth remains weak, the relative affordability of buying will push home prices upward.”