Renters who reinvest their money would see better returns than if they bought a house in many US housing markets.
That’s according to the latest national index produced by Florida Atlantic University and Florida International University faculty.
The Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index highlights that many markets could see significant price declines while others may remain flat.
Cities including Atlanta, Denver, Dallas, Honolulu, Houston, Kansas City, Los Angeles, Miami, Minneapolis, Pittsburgh, Portland, San Diego, San Francisco, Seattle and St. Louis; are reaching the end of their long-term pricing trend the report says.
Conversely, Boston, Chicago, Cincinnati, Cleveland, Detroit, Milwaukee, New York and Philadelphia, are below their long-term pricing trend meaning potential for home equity growth.
"On the heels of information concerning slowing housing starts, rising mortgage rates, decreased demand and unsustainable price increases, these numbers provide additional evidence that housing markets around the country are slowing, resulting in many to opt for renting," said Ken Johnson, Ph.D., a real estate economist and one of the index's creators in FAU's College of Business.
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