Latest news with #renting
Daily Mail
2 days ago
- Business
- Daily Mail
The California city with the most 'rich renters' as affluent residents ditch buying houses for savvy reason
San Jose, California, has been named the US city with the most 'rich renters' as wealthy Americans ditch home buying for a savvy reason. The tech hub topped a new study that found affluent Americans are increasingly abandoning homeownership as mortgage rates soar to 7 percent and property prices hit record highs. Wealthy renters are now choosing to lease rather than buy despite earning enough to purchase million-dollar homes, according to a Redfin study. Housing experts say wealthy renters are prioritizing flexibility and freedom in an uncertain economic climate. Redfin Senior Economist Elijah de la Campa said: 'With mortgage rates near 7 percent, renting frees up cash for other investments that may be more lucrative than real estate.' Redfin analyzed rental data from 2019 to 2023 and discovered that high earners now make up a growing share of America's rental market. San Jose beat out Orlando, Florida for the top spot, with San Francisco, New York and Seattle rounding out the top five cities where the wealthy are ditching homeownership for rentals. In San Jose, the median home sale price has reached a staggering $1.4million - the highest in the entire United States. Now some affluent residents have decided that renting makes more financial sense. The typical wealthy person living in San Jose would need to spend just 10.5 percent of their income to afford rent on a median-priced apartment, compared to a 21 percent to afford buying a median-priced home. 'Many affluent Americans are choosing leases over mortgages because the cost of buying a home has jumped significantly more than the cost of renting one in recent years,' said de la Campa. And Juan Castro, a Redfin Premier real estate agent in Orlando, said: 'For a lot of folks, renting is all about opportunity. The U.S. economy and job market are in flux, and people want to be able to move and flow as things change. 'I have friends who sold their home in favor of renting because they want the flexibility to move fast if their dream job surfaces in another state.' Housing experts say wealthy renters are prioritizing flexibility and freedom in an uncertain economic climate. Renting can 'free up cash for other investments that may be more lucrative than real estate' The typical wealthy person living in San Jose would need to spend just 10.5 percent of their income to afford rent on a median-priced apartment, compared to a 21 percent to afford buying a median-priced home 'They believe many employers won't offer remote work moving forward, and don't want to be stuck with a home that may be difficult to sell quickly.' At the other end of the spectrum, Oklahoma City, Oklahoma had the lowest share of affluent renters as of 2023, followed by Cincinnati, Ohio; Hartford, Connecticut; Cleveland, Ohio; and Providence, Rhode Island.
Daily Mail
2 days ago
- Business
- Daily Mail
EXCLUSIVE When are rents cheapest? The best months to bag a bargain in London, revealed
Renters could save themselves hundreds of pounds by moving home during certain months of the year, data shared with This is Money reveals. The autumn and winter months are generally the cheapest time to sign up to a new tenancy agreement, according to data crunched by analytics firm TwentyCi. Specifically, in November, December, January and February prices tend to be lower meaning it could be possible to bag a bargain. Meanwhile, rents reach their highest in August and September. The analysis focused on rents in London, which accounts for roughly a third of the private rental sector in England. Last year, the average new tenancy agreed in London in December last year was for £2,151 a month - hundreds of pounds cheaper than the average rent agreed in September. Those agreeing a new contract in September would pay £343 more, at £2,494 a month. The second most expensive month is August at £2,432. There were big savings to be had for those who agreed new tenancy agreements in November and January as well. The average rent agreed in November was £2,226 a month while the average rent agreed in January this year was £2,198. In 2023, average rents peaked in August and September at £2,453 a month respectively before falling back through autumn and winter. The average new rent agreed in December 2023 was £2,186 a month representing a £267 monthly saving compared to August and September. TwentyCi also checked the rents agreed in each given month in another major city, Birmingham. Here, rents averaged £1,107 a month in January 2024 before peaking in July at £1,148 a month. They then fell back, reaching a low of £1,103 a month in November. What does this mean for renters? The analysis suggests that rents are lower in the first four months of each year and start to rise, peaking in August or September before prices fall again in the final months. In December 2024 for example, newly agreed rental prices were 8 per cent lower than the yearly average of that year while in September they were 5 per cent higher. It means that savvy tenants who plan to move home this year may be wise to wait until closer to Christmas, when there is less competition and more room for negotiation. That is, if they aren't tied to the end of a contract at a specific time. Marc von Grundherr, director of Benham and Reeves estate agents, claims that renters who move during the busiest months can often find themselves offering 10 or 20 per cent above the 'asking' rent in order to compete with other potential tenants. 'Tenants can often face a premium if they choose to make their move during a busy period, but this premium is often driven by the tenant, not the landlord,' said von Grundherr. 'The summer months are often by far the busiest as students look for accommodation ahead of the academic year, whilst many families will also move to get settled before school starts. 'This rush can often run from late June right through until September and, as a result, we see an extremely high number of renters all fighting it out for a limited supply of stock of all property types. 'As a result, it's not unheard of for tenants to offer above and beyond the asking rent in order to secure a property, often without even viewing it, and this can be as much as 10 to 20 per cent more. 'Or, they will pay as much as six to 12 months rent in advance.' What if tenants can't avoid peak times? Many renters ultimately don't have much choice in deciding when to move. They might be tied into a contract until a specific date, have been asked to leave by their landlord, or they may be a student who lives with their parents in the holidays. But those that can't time the market can at least give themselves a chance of jumping to the front of the queue. 'The best advice for those looking to move during peak times is to be extremely prepared with respect to the required time to view, the budget needed for a deposit and the paperwork required for a letting agent,' adds von Grundherr. 'You can also pre-register your interest with agents so that you are at least near the front of the queue when a suitable property hits the market. 'Once you do find a property you like, be prepared to act very fast and seal the deal within the same hour of viewing.' Von Grundherr has some advice for landlords as well, advising them to try and arrange tenancy agreements to end during the busiest months of the year. He says: 'For landlords, having a tenancy agreement end during a low demand period can result in a lengthier void period. 'It's well worth planning any tenancy agreement to run over these low-demand periods, even if this means an unusual tenancy length of 18 months for example.' Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
The Sun
3 days ago
- Business
- The Sun
Katie Price boasts she earns ‘really good money' but claims she can't rent anywhere to live after bankruptcy hell
KATIE Price has claimed she's being discriminated against by rich landlords after her bankruptcy hell - despite earning tons of cash. The 47-year-old star was declared bankrupt twice in 2019 and then again last year over a huge unpaid tax bill. 5 5 She was discharged from both bankruptcies in March, a year after her Mucky Mansion was repossessed. Despite being allowed to buy property, people who have been made bankrupt find it difficult to get a mortage. But Katie says she can't even rent a property that she really loves because landlords keep turning her down. She said: "When you've been in a bankruptcy you just can't get anything it's so annoying. "I earn such good money, I earn like I did back in the day. "I earn such good money but it makes no difference if you earn the money. "Once you got that black mark against your name it's against your name there's nothing you can do." She continued on her podcast: "Even when I go to rent a house, right, and it's like ... soon as they know it's my name... it's discrimination. They're like, no, no, no. I'm like, why? Is it because of what you've read? "Does it really matter? I've got the money, I can pay up front, I can do that. "No. It's the name that puts people off. It's such discrimination. Inside Katie Price's new Mucky Mansion… plus the pets taking it over "So places I've looked at to rent they're like, 'oh, yeah, yeah', then book me in to see it. "Then I get a call, and they're like, the owner has decided to rent to someone else now. Then I still see it up." Katie - who is driving again after her latest ban was lifted - moved into a £3,750-a-month country pile in the Sussex countryside after leaving her Mucky Mansion. It comes as her daughter Princess, who turns 18 next month, has vowed to be a millionaire by the time she turns 20. Becoming an influencer in her own right, Princess has already signed brand ambassador deals with high street beauty chain Superdruge and online retailer PrettyLittleThing, and has launched her own jewellery range. Princess is following in her mum's footsteps and has also landed her own TV show on ITV. The series will give fans a behind-the-scenes look at her home life and early modelling career. A TV insider said: 'Princess is very conscious of the fact her mum got famous very early in her career, so Katie is a big inspiration to her. 'Bagging her own TV show is a huge deal, but producers are keen to stress it is about her and not her famous parents. "Both Katie and Peter are likely to feature, though it will likely be more as cameo stars.' 5
New York Times
4 days ago
- Business
- New York Times
Want to Rent a Studio in New York? You May Need a Roommate.
Trading space for savings in the bank is particularly appealing to people hoping to live alone. But in some U.S. cities, the median-earning renter may need a roommate to afford even a studio apartment, typically the smallest and most affordable units on the market. While rents across the country have come down a bit recently, they continue to be far less affordable than they were before the pandemic, according to the U.S. Department of Housing and Urban Development. And in hot markets like Miami and New York City, they show no signs of cooling down. The two cities have some of the least affordable studios in the country, according to a New York Times analysis of data from the U.S. census and Zillow's top rental markets, a list curated to be geographically representative of major markets across the country. Financial and housing experts consider a home affordable if it costs no more than 30 percent of a household's gross income. Under this guidance, the average rental prices for the smallest apartments in New York and Miami are two to three times what one person earning the median income in those cities can afford. In New York, full-time workers earned a median of $70,000 in 2023, according to the U.S. Census Bureau. Using the 30 percent formula, that would leave them with $1,750 a month for rent. But recent Zillow data shows that the average New York City studio currently rents for $3,200 a month. In Miami, the median-earning resident can afford a monthly rent of up to $1,200 on their own, while studios cost $2,100 on average. Based on median earnings, Americans without college degrees, who typically earn less, would have to squeeze in even more housemates. New Yorkers and Miami residents with a high school diploma, associate degree, or incomplete college education likely have to combine three incomes to comfortably afford studios. Without roommates or above-average incomes, renters will also struggle to find budget-friendly studios in other top markets including Orlando, Los Angeles and San Diego, according to the data. A Tight Squeeze A New York Times data analysis found that in Zillow's top rental markets*, the average studio rent surpassed or came close to 30 percent of median earnings, a threshold of housing affordability. 30 percent of median earnings Average studio rent Renters needed Market New York Miami Orlando Los Angeles San Diego Dallas Houston Chicago Phoenix Atlanta $1,757 $1,165 $1,315 $1,482 $1,829 $1,339 $1,322 $1,670 $1,342 $1,949 $3,225 $2,100 $1,530 $1,695 $1,995 $1,307 $1,219 $1,452 $1,075 $1,500 2 2 2 2 2 1 1 1 1 1 30 percent of median earnings Average studio rent Renters needed Market New York Miami Orlando Los Angeles San Diego Dallas Houston Chicago Phoenix Atlanta $1,757 $1,165 $1,315 $1,482 $1,829 $1,339 $1,322 $1,670 $1,342 $1,949 $3,225 $2,100 $1,530 $1,695 $1,995 $1,307 $1,219 $1,452 $1,075 $1,500 2 2 2 2 2 1 1 1 1 1 *Zillow's top rental markets are curated to be geographically representative of major markets across the U.S. Sources: Zillow, U.S. Census Bureau By The New York Times
CBC
6 days ago
- Business
- CBC
Renting vs. owning: Which one makes more financial sense?
With moving day in the city on the horizon, many Montrealers are reevaluating their housing choices. Is continuing to rent just throwing money away — or can it actually be a smart financial move? We spoke to financial literacy coach Beverly Wilks to learn the pros and cons of renting versus buying, and why renting might not be the bad deal some people think it is.
