Study Shows It Is More Affordable To Buy Than Rent In Maricopa County
According to an analysis by RealtyTrac, Valley homeowners spend a smaller percentage of wages on housing than renters.
RealtyTrac's analysis found the average Valley homeowner will spend 32.3 percent of wages on housing in 2015, while the average renter will spend 34.5 percent in 2016.
“Renters have a much better chance of transitioning into homeowners and doing so within the realm of affordability,” said Daren Blomquist, vice president at RealtyTrac.
The housing data firm collected information in 504 counties and concluded:
- Based on the national average, rents on three-bedroom properties will rise 3.5 percent in 2016
- In the Phoenix market, rents on three-bedroom properties will drop by less than 1 percent in 2016
- Based on the national average, median home prices were up 5 percent year over year
- In the Phoenix market, median home prices rose 8 percent year over year
Blomquist pointed out that Phoenix-area home prices have been rising faster than wages and called that unsustainable for the long term for keeping homes affordable.
In Arizona, only Coconino and Yavapai counties were listed as more affordable places to rent rather than buy.
RealtyTrac also released an interactive map detailing the best locations to buy and rent in 2016.