Good news for the multifamily industry: According to an analysis from Realtor.com, home prices are rising at three times the rate of rent growth.
A new analysis by the real estate company’s research division shows that the monthly costs of buying a home have risen by 14% over the past year while rents have only increased by 4%.
This likely means two things:
1. People are struggling to buy homes, so they must continue to rent.
2. If home prices are increasing at three times the rate of rent growth, there may be room left for rent growth going forward.
“Even setting aside big upfront expenses like a down payment, rising month-by-month costs are likely…