During the pandemic, home values increased across the country by double-digit percentages
Even though rent is still exorbitantly costly in the majority of the biggest cities in the United States, purchasing a home is an even more expensive endeavor. According to a recent analysis by real estate firm Redfin, there are currently only four significant metro regions where purchasing a home is more affordable than renting. According to Jason Aleem, senior vice president of real estate operations at Redfin, these cities are Detroit, Philadelphia, Cleveland, and Houston. You're financially better off sticking with renting in all other large cities, from San Jose, California, to Pittsburgh, Pennsylvania, according to the company's analysis.
According to Aleem, housing prices in Detroit, Philadelphia, Cleveland, and Houston did not experience the same surge during the epidemic as those in other major American cities, which explains why they are today more affordable for homebuyers than other areas. During the pandemic, home values increased across the country by double-digit percentages; however, the rise in mortgage rates is now putting further financial strain on homebuyers. This week, the typical rate for a 30-year loan exceeded 7%, making financing a house purchase more than twice as expensive as it was in 2021 and early 2022, when rates were around 3% or even lower.