Renting to Remain More Economical than Buying for Years, Analysis Shows

A recent CBRE report indicates that renting will be cheaper than buying a home for at least the next five years, as the housing market struggles to recover from the 2021 price surge.

• The average mortgage payment was 38% higher than average apartment rent at the end of last year, with the gap expected to persist.
• A nationwide housing shortage and higher mortgage rates are key factors behind the high cost of buying a home.
• Mortgage payments are projected to remain significantly higher than rents until at least 2028, according to CBRE.
• Markets like Dallas, Chicago, and Raleigh may see the buying vs. renting cost gap close sooner, while cities like Los Angeles and San Francisco will take longer.
• The U.S. faces a shortage of 3.8 million housing units, exacerbating the affordability crisis.

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