Dallas-Fort Worth consumers decidedly better off renting than buying a house, study says - Dallas Business Journal

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Dallas-Fort Worth is one of many housing markets where high home prices and mortgage rates make it better financially to rent than to buy, according to a new study.

Dallas-Fort Worth is one of many housing markets in the nation where high home prices and mortgage rates make it better financially to rent than to buy, according to a new study., according to the latest study from researchers at Florida Atlantic University and Florida International University.

The monthly report measures the ratio of a market’s average home price to that market’s average annual rent, allowing for a relative financial comparison between owning and renting, according to the study’s authors. McAllen, Texas ranks No. 1 in the nation in favor of renting, with a premium of 23.3% percent, according to the report.

The results favoring renting over buying reflect the fact that home prices generally are rising faster than rents, said Ken H. Johnson, an economist in Florida Atlantic University’s College of Business. The results showing renting beats buying come with a caveat, cautioned William G. Hardin III, dean of Florida International’s College of Business.

 

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