Renting No Longer Cost-Efficient, New Report Says

If you think you are saving money by renting, you may want to take a closer look at the numbers.

According to the annual Rental Affordability Analysis, 2016 is going to be a difficult year for renters to justify renewing their leases. While it used to be substantially cheaper to rent than buy a home, the new study indicates that this is no longer true for 58 percent of all housing markets in the nation, including Tampa Bay.

By analyzing housing data from the U.S. Department of Housing and Urban Development and wage data from the Bureau of Labor Statistics, the study finds that a renter needs to spend 37 percent of their yearly salary to afford a three-bedroom apartment when they could be making monthly payments on a house for 38 percent of their income.

In other words, for only 1 percent more of their income, the average person could be making mortgage payments instead of merely paying rent. Overall, the study predicts monthly rent will increase an average of 3.5 percent compared to last year.

The Tampa Bay housing market is one of the many areas currently feeling the effects of low interest rates and affordable properties for sale. As of December of 2015, a Tampa Bay house facing foreclosure sold for an average of 40 percent less than a “non-distressed” home, which translated into about $90,000 in savings per home. Nobody can be sure how long this trend will last, so now may be the best time to pick a property for much less than the national average.