US Housing Market Moving Further Into Buy Territory

Dated: 09/27/2016

Views: 255

Buy Territory

According to the latest Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index, the U.S. housing market has continued to move deeper into buy territory, supporting the belief that housing markets across the country remain a sound investment.


The BH&J Index is a quarterly report that attempts to answer the question:The index examines the entire US housing market and then isolates 23 major cities for comparison. 


The researchers “measure the relationship between purchasing property and building wealth through a buildup in equity versus renting a comparable property and investing in a portfolio of stocks and bonds.”Ken Johnson, Ph.D., Real Estate Economist & Professor at Florida Atlantic University, and one of the index’s authors explains that: “Housing prices, in general, continue to slow and when considered in light of the recent trends in the Buy vs. Rent Index signal that ownership remains an excellent investment for the majority of Americans. ”While 15 of the 23 metropolitan markets examined moved further into buy territory since last quarter, Dallas, Denver, and Houston are three of the major cities that are currently deep into rent territory. In these three markets, it is estimated that renting will top homeownership 7 out of 10 times.


Eli Beracha, Ph.D., Assistant Professor in the T&S Hollo School of Real Estate at FIU, believes that, in these three markets, the “strong odds in favor of renting to create more wealth should begin to have an impact on the demand for home ownership and from that, impact property prices in these areas.


”Simply put, home prices in these areas will begin to return to more normal levels once residents realize that renting may be a better choice, therefore bringing home affordability back as well.The majority of the country is strongly in buy territory. 


Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year. Protect yourself from rising rents by locking in your housing cost with a mortgage payment now.


To Find Out More About the Study: The BH&J Index and other FAU real estate activities are sponsored by Investments Limited of Boca Raton. 


The BH&J Index is published quarterly and is available online at http://business.fau.edu/buyvsrent.

Blog author image

Lance Whipple PA

Lance is a Retired Air Force Officer and skip-generation real estate agent -- his grandparents ran a real estate brokerage in Oregon during the 1960s and 70s. Lance helps mainly vacation home investor....

Latest Blog Posts

The 1 Reason It Is Difficult To Find Your Dream Home

The #1 Reason It Is Difficult to Find Your Dream HomeThe headlines in real estate today all revolve around one major point: there is a shortage of homes available for sale. Price appreciation

Read More

Four Tips For Selling Your Central Florida Home In A Hurry

Four Tips for Selling Your Central Florida Home in a Hurry.One of the good things about the Kissimmee real estate market, if you are a homeowner, is thatthere is always someone looking to buy. Even

Read More

A REAL STEAL BALMORAL RESORT TOWNHOME IN THE DISNEY AREA FLORIDA

  Resort Style Living in this beautiful 2 story fully furnished townhouse on the private, gated  Balmoral community on Hwy 27 close to Legoland and easy access to the

Read More

Choosing Your First Home

Can I Afford the House I want?One mistake young homeowners make is overextending themselves on the price of a house. They can look at what a monthly mortgage payment can be and decide that if they

Read More