Rent vs Own? The Time to Buy is NOW!

Wondering if you should buy vs rent your next home? ATTOM Data Solutions, which manages the nation’s largest property database, released its 2017 Affordability Report, which shows that buying a home is more affordable than renting in 66% of U.S. housing markets. The report found that making monthly payments on a median-priced home, including mortgage, property taxes and insurance, is more affordable than renting a three-bedroom property in 354 of the 540 counties analyzed in the report including all in the Tampa Bay MSA.

In Pinellas County, the 2016 median home price was $168,300.  That represents 29.3% of average wages needed for purchase.  Conversely, the fair market rent price of a 3-bedroom home in the area is $1,432 per month, which represents 37.7% use of wages.  Therefore, purchasing a home in Pinellas County saves you 8.4% of your annual wages.  The same is true in other local MSAs.  In Hillsborough County, you will save 7.2% of your annual wages when purchasing a home, Manatee County, you will save 1.7% and in Sarasota County you will save 3.9% of annual wages.
County             % of Wages            2016 Median                      Avg. Rent          % of Wages         Savings
                              Purchase                 Home $                                                               Rent
Pinellas                     29.3%                   $168,300                       $1,432                       37.7%                   8.4%
Hillsborough           27.6%                   $178,000                        $1,432                       34.8%                   7.2%
Manatee                   44.7%                   $232,000                       $1,560                      46.4%                   1.7%
Sarasota                   40.2%                   $216,000                       $1,560                      44.1%                    3.9%
Not only is it cheaper to purchase a home in the area, its also much easier to find a home for purchase rather than rent in local counties.  Currently in the Tampa Bay MSA  there are 18,823 homes for sales versus only 4,093 homes for rent. This lack of inventory is creating a rental shortage, further fueling rising prices.  The same is true in neighboring counties:
County             # of homes for sales        # of homes for rent 
Pinellas                       5,662                                      1,022
Hillsborough             5,229                                      1,003
Manatee                     3,134                                          783
Sarasota                     4,798                                       1,285
What does all this mean for your average consumer?  Buy your next home rather than rent!  With many experts stating that home prices will continue to rise, this trend will not last forever.  Not to mention, purchasing a home creates potential for long term profits unavailable to renters.  Who doesn’t like making money?
Need help navigating the ins and out of the local real-estate market?  Contact Southern Roots Realty today.  727-498-1673 or use our contact form on our website:
*All data provided by ATTOM Data Solutions and local MLS.