Cheaper to Rent than Buy

[Fernando]

https://www.kget.com/news/state-news/renting-far-cheaper-than-buying-in-californias-largest-metro-areas-report-finds/

Renting far cheaper than buying in California’s largest metro areas, report finds​

Renting a home remains significantly cheaper than buying in all of California’s largest metro areas, according to a new study released Wednesday.

The study, conducted by financial analysis website Bankrate, found monthly mortgage payments far outpacing rent in the state’s high-cost housing markets, keeping in line with a national trend.
The study compared the average monthly rent to average monthly mortgage payments across the 50 largest U.S. metropolitan areas.

The biggest discrepancy in the U.S. was in San Francisco, where the typical mortgage payment is more than 190% higher than the average price of rent. San Jose ranked second nationwide with a 186% difference.

Seattle, Denver and Salt Lake rounded out the top five.
The top five metro areas with the largest differences between renting and buying were all in the West, led by:

• San Francisco/Oakland/Berkeley: $3,055 rent vs. $8,882 mortgage (190.7% difference)
• San Jose/Santa Clara: $3,305 rent vs. $9,438 mortgage (185.6%)
• Seattle: $2,265 rent vs. $4,971 mortgage (119.5%)
• Denver: $1,927 rent vs. $3,787 mortgage (96.5%)
• Salt Lake City: $1,680 rent vs. $3,197 mortgage (90.4%)

Nationwide, the average mortgage payment for a median-priced home climbed to $2,768 per month, up from $2,703 last year. In contrast, the national average rent held steady at about $2,000, making renting 38% cheaper on average.

According to Bankrate, the five metro areas with the smallest difference between average monthly rent and mortgage payments are:

• Detroit: $1,481 rent vs. $1,515 mortgage (2.3% difference)
• Pittsburgh: $1,452 rent vs. $1,601 mortgage (10.3%)
• Philadelphia Metro Area: $1,901 rent vs. $2,121 mortgage (11.5%)
• Cleveland: $1,419 rent vs. $1,607 mortgage (13.2%)
• Tampa/St. Petersburg, Florida: $2,140 rent vs. $2,587 mortgage (20.9%)

 

[Fernando]

Bay Area Housing Forecast: Zillow Predicts 5% Drop in Home Prices

Zillow forecasts a 5% drop in Bay Area home prices by early 2026. Learn why and what it means for buyers and sellers.

www.noradarealestate.com

Bay Area Housing Forecast: Zillow Predicts 5% Drop in Home Prices​

If you're keeping a close eye on the crazy world of Bay Area real estate, like I am, you've probably felt the ground shifting a bit. Well, the latest word from Zillow is adding to that feeling: their forecast suggests that Bay Area home prices are expected to drop by about 5% by the end of March 2026.

Specifically, for the San Francisco metro area, Zillow is predicting a 5.2% decline between the end of March 2025 and the end of March 2026. This news might bring a mix of emotions, depending on whether you're dreaming of buying a home here or already own one. Let's dive into what this forecast means and what could be driving this shift in one of the nation's most competitive housing markets.

What's Behind the Predicted Price Dip?​

It's not just a random guess, of course. Zillow's prediction is based on a combination of factors they're seeing in the current market and what they anticipate happening over the next year or so. Nationally, they're forecasting a 1.9% decrease in home values for this year, a significant change from their earlier expectation of a slight increase. This nationwide trend is definitely playing a role in what's happening here in our beloved Bay Area.

One of the main reasons for this expected cooling is the interplay between rising available listings and still-high mortgage rates. For a long time, we saw incredibly low inventory in the Bay Area, which drove prices sky-high. Now, more homes are coming onto the market, giving buyers more choices and, importantly, more time to make a decision. This shift in supply and demand dynamics naturally puts some downward pressure on prices.

And let's not forget those mortgage rates. While they've come down from their peak, they're still significantly higher than what we saw just a few years ago. Zillow anticipates rates will likely hover around 6.5% by the end of 2025. These elevated rates make buying a home more expensive, impacting affordability and further influencing the willingness and ability of buyers to pay top dollar.

The Rental Market: A Different Story?​

While the for-sale market is expected to cool somewhat, the rental market presents a slightly different picture. Zillow forecasts that single-family rents will rise by 3.1% in 2025, while multifamily rents are expected to increase by 2.1%. While these growth rates are slower than what we've seen recently, they still indicate an upward trend.

Several factors contribute to this. Firstly, affordability challenges and economic uncertainty are pushing some would-be buyers to delay their home purchases and continue renting. This increased demand, particularly for single-family rentals, is likely to keep upward pressure on rents. Additionally, while apartment construction may be slowing down, the demand for housing in general, especially in a desirable area like the Bay Area, remains strong.

 

[Terrel L. Shields]

I can rent a new 2 bath 3 bed duplex in Siloam for $1,200 a month. Older 3 bed apartments from $700-1,100 a month. Saw a lakeside house 3 bed, 2.25 bath for $1,450 a month. In Tulsa, single bed starts at $700 and lots of 2 bed houses under $1,000.

 

[Fernando]

I can rent a new 2 bath 3 bed duplex in Siloam for $1,200 a month. Older 3 bed apartments from $700-1,100 a month. Saw a lakeside house 3 bed, 2.25 bath for $1,450 a month. In Tulsa, single bed starts at $700 and lots of 2 bed houses under $1,000.

My office rents are as low as $700. Oversupply of offices. Commercials bad investment.
Average 2 bedrm rentals here are around $3,000/month. Residentials good investment.