3 September 2020
As the U.S. {housing|real estate} market powers through the coronavirus pandemic, {home|house} {prices|costs|rates} are {rising|increasing}, bidding wars are {erupting|emerging|appearing}– and {renting|leasing} is growing more {attractive|appealing} in some {booming|flourishing|thriving|growing} markets. That’s according to an index {released|launched} Thursday. {Buying|Purchasing} in Dallas, Denver, Houston and Kansas City {carries|brings} {significant|considerable|substantial} {risk|danger|threat}, {because|since|due to the fact that} of fast-rising {home|house} {prices|costs|rates} and the {potential|capacity}
for future {declines|decreases}, according to {the latest|the most recent|the current} Beracha, Hardin & Johnson {Buy|Purchase} vs. {Rent|Lease} Index. On the other hand, it {makes sense|makes good sense} to {buy|purchase} in Chicago, Cleveland and {New York|New York City} City. And the rent-or-buy calculus is”a virtual toss-up”in Boston, Honolulu, Milwaukee, Minneapolis and St. Louis, {says|states} index co-author Ken H. Johnson, {a real estate|a realty|a property} {economist|economic expert|financial expert} at Florida Atlantic University. The index {measures|determines} whether {consumers|customers} will {create|produce|develop} {greater|higher}
wealth by {buying|purchasing} {a home|a house} and {building|structure} equity or {renting|leasing} and reinvesting {the money|the cash} they would have {spent on|invested in} ownership, such as taxes, {insurance|insurance coverage} and {maintenance|upkeep}. The index {looks at|takes a look at} 23 {metro|city} {areas|locations}, {factoring in|considering} {home|house} {prices|costs|rates}, {rents|leas}, {mortgage|home loan|home mortgage} rates, {investment|financial investment} returns
, {property taxes|real estate tax}, {insurance|insurance coverage} and {home|house} {maintenance|upkeep} {costs|expenses}. {The markets|The marketplaces} that {most|many|a lot of|the majority of} {favor|prefer} {renting|leasing} The Buy vs. {Rent|Lease} Index’s figures for the {second|2nd} quarter {show|reveal} that {home|house} {prices|costs|rates} are above their {long-term|long-lasting} average in 13 markets, {including|consisting of} Atlanta, Los Angeles and Philadelphia. That {means|implies|indicates|suggests} {consumers|customers} {should|ought to|must|need to} {rent|lease} and reinvest {rather than|instead of} {buy|purchase} and {build|develop|construct} equity in those markets. The {five|5} markets that {most|many|a lot of|the majority of} {favor|prefer} {renting|leasing} {rather than|instead of} {buying|purchasing} are {places|locations} that experienced strong {buyer|purchaser} interest {during|throughout} the spring: Dallas: This {metro|city} {area|location}’s reading is 0.73 out of {a maximum|an optimum} of 1. Denver: This {region|area}’s index is 0.65. Houston: Its index is 0.62. Kansas City: The {metro|city} {area|location}’s reading is 0.39. Seattle: Its index is 0.35. {The markets|The marketplaces} that {most|many|a lot of|the majority of} {favor|prefer} {buying|purchasing} Cleveland: Its index was -0.14 of a possible -1.22. Chicago: Its index was -0.18. {New York|New York City} City: Its index of -0.21 was {the lowest|the most affordable} reading. Manhattan sales volumes {have|have actually} been {hit|struck}hard byCOVID-19, while the surrounding {{boroughs|districts} and {suburbs|suburban areas|residential areas}|{suburbs|suburban areas|residential areas} and {boroughs|districts}} {have|have actually} seen an
high taxes or some other {reason|factor}.|It {doesn’t|does not} {factor|element|aspect}
high taxes or some other reason.} If {New York|New york city} City falls from favor as {an international|a worldwide|a global} {destination|location}, Johnson {says|states},”all bets are off on {New York|New york city} {housing|real estate}. If not, the {housing|real estate} market in the {area|location} {should|ought to|must|need to} ride out this rough {patch|spot} {quite|rather} well {based on|based upon} the {historical|historic}
{performance|efficiency} of {housing|real estate} for the {area|location}.”{New York|New york city} had the worst reading on Bankrate’s {Housing|Real estate} {Hardship|Difficulty|Challenge} Index for July. The state {unemployment|joblessness} rate was 15.9 percent in July, up from 15.7 percent in June and 14.5 percent in {May|Might}. {New York|New york city}’s delinquency rate {fell to|was up to} 8.38 percent, {down from|below} 9.65 percent in June. Johnson acknowledges that the index, {created|produced|developed}
by {economists|economic experts|financial experts} at Florida Atlantic University and Florida International University, is”{pretty|quite} wonky.” He {describes|explains} the findings for {New York|New york city} City {this way|by doing this|in this manner}: Of 100 {people|individuals} who {bought|purchased} {homes|houses} in the {New York|New york city} {metro|city} {area|location} in the {second|2nd} quarter, 70 would {amass|accumulate|generate|collect} more wealth from {owning and {building|developing|constructing}|{building|developing|constructing} and owning} equity, while the other 30 would {acquire|obtain|get} more wealth by {renting|leasing} and reinvesting the {cash|money} that would otherwise be {spent on|invested in} ownership in a portfolio of {stocks and bonds|bonds and stocks}. {Learn more|Find out more|Discover more}: Source: bankrate.com