Buying A Home Cheaper Than Renting In NJ, Survey Shows [AUDIO]
Renting used to be cheaper than buying, but not anymore.
According to a report released by real-estate listing site Trulia, rents rose 5% over the past twelve months.
“Prices have fallen so much in the U.S. since the housing bubble burst and rents have been rising at the same time” said Jed Kolko, chief economist at Trulia.
Of the 100 metro areas Trulia surveyed, Edison, New Jersey is one of the top five towns nationwide where rent has risen the most, up 10.5% in one year.
In addition to Edison, its a lot less expensive to buy rather than rent in both Camden and Newark, according to the survey.
“New Jersey is an expensive state, but buying is more affordable than renting in every metro area in the state. Buying is much more affordable in the southern half of the state, but even in the suburbs in the northern areas near New York, buying is still less expensive than renting” said Kolko.
He said many people won’t be able to seize the opportunity to own a home.
“Many people can’t even ask the question whether it makes sense to rent rather than buy because they can’t qualify for a mortgage or they haven’t saved enough for a down payment.”
And with fewer consumers able to make that leap, Kolko says rents could continue to climb higher.
“Renters are going to have a hard time over the next few years, because they can’t afford to buy a home, yet they continue to pay higher rents, its really a double-edged sword.”