According to ATTOM Data Solutions’ 2020 Rental Affordability Report, owning a median-priced, three-bedroom home in the U.S. is more affordable than renting a three-bedroom property in 455, or 53 percent, of the 855 U.S. counties analyzed for the report.
Home ownership is a better deal than renting for the average wage earner in a slim majority of U.S. housing markets. However, there are distinct differences between different places, depending on the size and location from core metro areas,” said Todd Teta, chief product officer with ATTOM Data Solutions.
The Least Affordable Rental Markets
The report shows that renting a three-bedroom property requires an average of 37.6 percent of weekly wages across the 855 counties analyzed for the report.
The least affordable markets for renting are Santa Cruz County, CA (82.1 percent of average wages needed to rent); Marin County, CA (outside San Francisco) (75.3 percent); Park County, CO (southwest of Denver) (74.3 percent); Honolulu County, HI (74.2 percent) and Kauai County, HI (73.7 percent).
Counties with a population of at least 1 million, where rents consume the highest percentage of average wages, include Kings County (Brooklyn), NY (65.3 percent); Orange County, CA (outside Los Angeles) (64.7 percent); San Diego County, CA (59.6 percent); Contra Costa County, CA (outside San Francisco) (58.4 percent) and Queens County, NY (57.4 percent).
The Most Affordable Rental Markets
The most affordable markets for renting are Roane County, TN (west of Knoxville) (20.1 percent of average wages needed to rent); Steuben County, NY (south of Rochester) (22.2 percent); Madison County (Huntsville), AL (22.4 percent); Greene County, OH (outside Dayton) (23.0 percent) and Sangamon County (Springfield), IL (23.2 percent).
Among counties with a population of 1 million or more, those most affordable for renting are Allegheny County (Pittsburgh), PA (24.3 percent); Cuyahoga County (Cleveland), OH (25.6 percent); Fulton County (Atlanta), GA (26.2 percent); Oakland County, MI (outside Detroit) (26.6 percent) and Wayne County (Detroit), MI (27.5 percent).
Home prices rising faster than rents in 67 percent of markets
Median home prices rose faster than average fair-market rents in 575 of the 855 counties analyzed in the report (67.3 percent), including Harris County (Houston), TX; San Bernardino County, CA (outside Los Angeles); Bexar County (San Antonio), TX; Wayne County (Detroit), MI and Philadelphia County, PA.
Average rents rose faster than median prices in 280 counties (32.7 percent), including Los Angeles County, CA; Cook County (Chicago), IL; Maricopa County (Phoenix), AZ; San Diego County, CA and Orange County, CA (outside Los Angeles).
Home prices rising faster than wages in 66 percent of markets
Median home prices rose faster than average weekly wages in 567 of the 855 counties analyzed in the report (66.3 percent), including Harris County (Houston), TX; Maricopa County (Phoenix), AZ; Miami-Dade County, FL; Riverside County, CA (outside Los Angeles) and Queens County, New York.
Average weekly wages rose faster than median home prices in 288 counties (33.7 percent), including Los Angeles County, CA; Cook County (Chicago), IL; San Diego County, CA; Orange County, CA (outside Los Angeles) and Kings County (Brooklyn), NY.
Wage growth outpacing rent growth in 57 percent of markets
Wages rose faster than average fair market rents in 484, or 56.6 percent, of the counties analyzed in the report including Harris County (Houston), TX; San Bernardino County, CA (outside Los Angeles); Bexar County (San Antonio), TX; Wayne County (Detroit), MI and Philadelphia County, PA.
Average rents rose faster than average wages in 371, or 43.4 percent, of counties in the report, including Los Angeles County, CA; Cook County (Chicago), IL; Maricopa County (Phoenix), AZ; San Diego County, CA and Orange County, CA (outside Los Angeles).