Renting Is Cheaper Than Buying, Almost Everywhere

Sure, landlords in all those cities are running charities where they pay more in carry costs of the home and rent it out at lower rate to benefit renters. That is how economics work.
 
I think the study is a little bit flawed in that there are many tenants who are on lease agreements prior to the rise of home prices this year. And to top it off many landlords are worried about raising rents and then having the tenant simply claiming they are COVID affected and stop paying rent all together.
 
It is a bait click article.

They say San Diego median rent 1500 and median payment for ownership is 2500.
$1500 gets you 500 sqft apt to rent in SD.
$2500 carry cost gives you $500k purchase power, which gets you 1300 sqft.

Apples. Oranges.
 
Landlords have a lower cost basis, since most purchased in prior years.  particularly with prop13.

Cornflakes said:
Sure, landlords in all those cities are running charities where they pay more in carry costs of the home and rent it out at lower rate to benefit renters. That is how economics work.
 
I wonder if the landlords' association sponsored that article. Typical FUD in mainstream media ignoring inflation, leveraged appreciation, and ability to build wealth through real estate.
 
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