Price-to-rent answers affordability questions
If you’re debating whether to rent or buy, look to your local price-to-rent ratio for guidance. A recent analysis revealed which of the nation’s housing markets boast the lowest ratios — thus favoring buying over renting — as well as the spots where renting might be more affordable in the long run.
Where buying a home’s more affordable
According to a new analysis from Rentberry, Trenton, New Jersey, boasts the nation’s lowest price-to-rent ratio, making it a slam-dunk for potential home buyers.
The median property price in Trenton sits at $149,700, while the average monthly rent is $1,500 per month, making Trenton’s rent-to-price ratio 8. Daniela Andreevska, content director at real estate analytics firm Mash Visor, says anything in the 15 and under range means buying a home is more affordable than renting.
“For renters and homebuyers, this means that it is relatively cheaper to buy a property in a certain market rather than to rent there,” Andreevska said. “So, if you have the necessary…