With rising rents, more renters are being swayed into home ownership.Â Many are finding they buy a home and get the same amount of spaceÂ cheaper thanÂ renting in our region. Affordability in housingÂ is at record highs from the combination of falling home values and record-low mortgages.
Rents are increasing at about the same pace that home values are dropping, says Stan Humphries, Zillowâ€™s chief economist, who says, according to their surveys, home prices have dropped 3.1 percent year-over-year whereas rents have increased 2.5 percent. â€œHerein lie the seeds to eventually more interest in buying on the part of consumers, which will help put a floor under home prices,â€ Humphries told Investors Business Daily.
Recent housing surveys, including Zillowâ€™s, are showing home prices are starting to rise in recent months. Since this varies by local areas, howâ€™s your market doing?
Source: â€œRising Rents Prompt Buys, May Help Housing Recover,â€ Investors Business DailyÂ 5/10/12