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Renting Is Cheaper Than Buying in All 50 Major Metro Areas in the United States

nytimes.com

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Re: Renting Is Cheaper Than Buying in All 50 Major Metro Areas in the United States

#51
post #43
post #37

Isn't this generally always the case? I've always understood that when you buy you should expect to be paying more than a renter for maybe 5-10 years. At least in the US mortgage payments are almost always fixed whereas rents are almost never fixed or controlled. Rent just rises forever in most cities and usually mortgage payments of people who have owned for 10 years look like amazing bargains.

No. When you rent, you usually are paying (1) the owner's mortgage, (2) taxes, (3) maintenance and (4) profit. So renting the same place is almost always much more expensive than the mortgage payment. Rents do not have to rise. They have been rising in most cities because people are moving to cities. Rents dropped in Detroit when a lot of people left. (Rents also rise with inflation.) I do wonder about the data. It c…

> No. When you rent, you usually are paying (1) the owner's mortgage, (2) taxes, (3) maintenance and (4) profit

In what world is this usual? Most of the time when renting you're paying for a single floor of a house or a single condo unit. It would be insane to expect people who are renting a portion of a building to pay for the whole damn thing.

Re: Renting Is Cheaper Than Buying in All 50 Major Metro Areas in the United States

#52
post #7
post #4

Earlier quoted context omitted.

If there is high inflation, the Fed will raise interest rates, crashing the housing market. Not saying you're wrong, but there are many factors to be considered.

High inflation is actually good for homes and other assets. The market will be dampened, but home values will rise with inflation. Holding assets is a good hedge against inflation. That and your mortgage is locked so your payment gets super cheap in high inflation situations.

The government will never allow high inflation as it undermines the willingness to write and sign long term contracts and trade agreements.
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