{"id":173588,"date":"2023-01-26T07:23:40","date_gmt":"2023-01-26T14:23:40","guid":{"rendered":"https:\/\/inbusinessphx.com\/?p=173588"},"modified":"2023-01-26T07:23:40","modified_gmt":"2023-01-26T14:23:40","slug":"phoenix-area-renting-costs-nearly-1116-less-per-month-than-buying-says-report","status":"publish","type":"post","link":"https:\/\/staging.inbusinessphx.com\/?p=173588","title":{"rendered":"Phoenix Area Renting Costs Nearly $1,116 Less per Month than Buying, Says Report"},"content":{"rendered":"
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For many Americans hoping to make the transition to first-time buying in 2023, renting will likely offer relatively more affordable options in the months ahead, according to the Realtor.com\u00ae\u00a0Monthly Rental Report<\/a> released today. On average across the 50 largest U.S. metros in December, a typical renter faced a 41.4% ($792) lower monthly payment than a starter homeowner. In the Phoenix area, that same renter would experience a 70.1% ($1,116) lower monthly payment.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/header>\n
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The markets with the largest monthly savings for renters, ranked by the percent difference between monthly mortgage payments and asking rents, include:<\/p>\n

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  1. Austin, Texas<\/span> (121.3% or $2,013<\/span>)<\/li>\n
  2. San Francisco, Calif.<\/span> (97.0% or $2,855<\/span>)<\/li>\n
  3. Seattle, Wash.<\/span> (86.1% or $1,772<\/span>)<\/li>\n
  4. San Jose, Calif.<\/span> (83.0% or $2,621<\/span>)<\/li>\n
  5. San Diego, Calif.<\/span> (77.2% or $2,085<\/span>)<\/li>\n
  6. Los Angeles, Calif.<\/span> (74.9% or $2,150<\/span>)<\/li>\n
  7. Boston, Mass.<\/span> (73.1% or $2,097<\/span>)<\/li>\n
  8. Portland, Ore.<\/span> (71.2% or $1,246<\/span>)<\/li>\n
  9. Phoenix, Ariz.<\/span> (70.1% or $1,116<\/span>)<\/strong><\/li>\n
  10. Sacramento, Calif<\/span> (67.7% or $1,241<\/span>)<\/li>\n<\/ol>\n

    “Despite the fact that renting will likely be cheaper than buying in 2023, rental affordability will remain a key issue throughout the year. We expect rents will keep hitting new highs<\/a>, driven by factors including still-low vacancy rates<\/a>, lagging new construction<\/a>\u00a0and demand from would-be first-time buyers,” said Realtor.com\u00ae<\/sup>\u00a0Chief Economist Danielle Hale<\/span><\/a>. “For prospective first-time buyers, the key consideration when figuring out whether to buy or rent is how long you plan to live in your next home. If you’re looking for flexibility to move in the shorter term, renting may be your best bet, and still offer opportunities to save if you’re able to compromise on factors like proximity to the downtown area. Whereas buying could be the better option if you’re planning to stay put for at least five years. Market conditions will play a role, but ultimately the timing comes down to your personal situation, and tools like the Realtor.com<\/a>\u00ae<\/a> Rent vs. Buy Calculator<\/a>\u00a0can help you organize and make sense of the many considerations.”<\/p>\n

    In December, renters faced lower monthly costs than first-time buyers, on average across the 50 largest U.S. metros and in the vast majority (45) of these markets. Additionally, the gap between the cost of renting and buying a similar-sized home widened significantly compared to December 2021<\/span>. While this was partly attributed to the slowdown in rent growth seen over the past year, December trends indicate that the increase in relative rental affordability was primarily driven by skyrocketing mortgage rates.<\/p>\n