It's cheaper to rent than buy in Columbus — and it's not even close
It's much cheaper to rent than buy a home Columbus — and these days, the comparison isn't even close.
Driving the news: Rents have tapered nationwide due to an influx of newly built apartments hitting the market. But home-buying costs continue to spike.
Follow the money: Columbus-area buyers have to earn almost $38,000 more a year than renters to afford their monthly housing payments, according to a recent Redfin report.
That gap has ballooned significantly post-pandemic — it was about $10,000 in 2020.
The fine print: Redfin's analysis is based on median home prices and rents and assumes a homebuyer or renter spends no more than 30% of their income on monthly payments.
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Yahoo
an hour ago
- Yahoo
South Florida now emerging as the ‘epicenter of housing weakness' — but will it spread to the rest of the US?
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Find out how you can access this $1B private real estate fund (with as little as $10) Notably, pending sales in Miami plunged 23%, while transactions in Fort Lauderdale and West Palm Beach declined by 19% and 14%, respectively. According to Chen Zhao, head of economics research at Redfin, the region is clearly under pressure. 'South Florida is the epicenter of housing market weakness in the United States,' she told Bloomberg. Homes are also sitting on the market much longer than elsewhere. In April, the median time to sell in West Palm Beach and Fort Lauderdale was 83 days, and 81 days in Miami — more than double the national average of 40 days. South Florida saw a historic run-up in prices during the pandemic, with homes routinely selling above asking price. But the tide has turned. In April, the median home sale price across Florida fell 3.2% year over year. And in West Palm Beach, Miami and Fort Lauderdale, nearly 5% of homes sold below asking — compared to just 0.77% nationally. 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As Federal Reserve Chair Jerome Powell acknowledged in a press conference last year, the real issue behind America's housing crisis is clear: 'We have had, and are on track to continue to have, not enough housing.' A June 2024 analysis by Zillow estimates the U.S. housing shortage at 4.5 million homes — a gap that continues to support demand and rental prices in many regions. Meanwhile, many investors view real estate as a time-tested hedge against inflation. As the cost of materials, labor and land rises, property values often follow — and so do rents. This allows landlords to earn income that tends to keep pace with inflation. Of course, with today's high home prices, elevated mortgage rates and an uncertain outlook, jumping into the market might feel daunting. But the good news is, you no longer need to buy a property outright to tap into the benefits of real estate investing. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class. Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants. The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you'd like to purchase, and then sit back as you start receiving positive rental income distributions from your investment. Another option is First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord. 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CNET
2 hours ago
- CNET
Mortgage Rate Predictions for June: Can Rates Fall Without Fed Cuts?
Mortgage rates can change daily and even hourly. Tharon Green/CNET Forecasts for the housing market haven't changed much, with stubbornly high mortgage rates keeping prospective homebuyers on the sidelines. After the average rate for a 30-year fixed mortgage inched past 7% last week, it's moving back down, but not by much. Meanwhile, Friday's release of labor data showed the unemployment rate maintaining a status quo at 4.2%, which likely won't cause enough alarm for the Federal Reserve to reduce interest rates at its upcoming policy meeting on June 17-18. As I've pointed out in the past, a slowing job market would make it more likely for the central bank to lower borrowing costs. But even though official labor data appears stable, experts warn the worst is yet to come. Jobless claims and layoffs are increasing, signaling employer caution amid trade wars and ballooning government debt. The Fed is facing a challenging balancing act between keeping inflation in check and keeping unemployment low. Inflation is expected to go up as domestic companies pass expensive duties onto consumers in the form of higher retail prices. "As long as the tariffs remain high, there will be a worry about persistently high inflation that the Fed cannot ignore," said Chen Zhao, Redfin's head of economic research. Most experts say the housing market is unlikely to change significantly in the coming months. With no clear consensus on what's next for the economy or fiscal policy, mortgage rates have been in a holding pattern. Prospective homebuyers should expect rates to remain near 6.8% for the remainder of 2025, according to Redfin's forecast. How would the Fed impact mortgage rates? Following signs of cooler inflation, the Fed cut interest rates three times in 2024, making borrowing costs slightly less restrictive. 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If you're waiting for mortgage rates to come down before buying, keep in mind that the large-scale economic issues affecting the housing market are beyond your control. Instead, you can focus on the ways to bring down your individual mortgage rate, said Hannah Jones, senior research analyst at For example, shopping around for lenders can save borrowers up to 1.5% on their mortgage rate. Since each lender offers different rates and terms, you can always negotiate a better rate. If you're financially ready to buy, you can always refinance your mortgage down the road. Jones said other strategies for lowering your mortgage rate include improving your credit score, making a larger down payment or choosing a more affordable home. Experts recommend making a homebuying budget and sticking to it. Creating a realistic financial plan can help you decide if you can handle the costs of homeownership and provide you with some guidance for how large your mortgage should be. Watch this: 6 Ways to Reduce Your Mortgage Interest Rate by 1% or More 02:31 More on today's housing market
Axios
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- Axios
No one is buying vacation homes in NWA
As buying a home has gotten less attainable for Northwest Arkansas, demand for second homes in the region and nationwide is also at its lowest in data going back to 2018, Redfin reports. Why it matters: Vacation homes are losing their luster. Homeownership costs have soared, and cities are cracking down on short-term rentals. Plus, fewer people can work remotely from their beach house or ski chalet these days. By the numbers: U.S. homebuyers took out around 86,600 mortgages for second homes last year, per Redfin's analysis of Home Mortgage Disclosure Act data. That's down roughly 5% from a year earlier and 66% from the pandemic era's home-buying frenzy. Zoom in: Demand has particularly cratered in Florida as climate-related housing costs swell. Mortgages for second homes fell from the previous year in 30 of the 50 most populous metros, led by Miami (-32%), Orlando (-28%) and Fort Lauderdale (-28%). The big picture: Home sales are sluggish overall, with many shoppers sidelined by high prices, elevated mortgage rates and economic uncertainty. Second-home mortgages represented less than 3% of all mortgage originations in 2024 — a record low, per the real estate site. Reality check: Even wealthy cash buyers are watching their wallets. The intrigue: Travelers may be cooling on second homes, too.
