Originally published on June 14, 2023, by Danielle Nguyen for John Burns Research & Consulting.
One year ago, we published a piece highlighting demand shifting from owning to renting—and we’d like to give you an update. The monthly premium to own versus rent has now hit $1,030 per month, compared to $884 per month at this time last year (see note)—increasing demand for rental homes while reducing demand for homeownership.
Note: historical values do not exactly match last year’s article, as we added a new data source that provides more real-time responsiveness to this metric.
Even higher mortgage rates and still elevated resale prices continue to challenge for-sale housing affordability—resulting in a higher-than-usual number of home renters staying in place and even more buyers moving to the sidelines as they can no longer afford to purchase a home.
While this metric has decelerated from a $1,188 peak in October 2022, it remains much higher than usual.