Renters gain financial edge over homebuyers in key U.S. markets

In all 50 of the largest metro areas, it was more affordable to rent than to buy in February 2024

A report released Tuesday by Realtor.com highlights a significant disparity in costs between buying and renting a starter home across the country’s 50 largest metropolitan areas. As of February 2024, the monthly cost of purchasing a starter home surpassed that of renting by $1,027, a 60.1% difference. 

Notably, renting emerged as the most affordable option across all 50 major metros, an increase from 45 metros in February 2023. Cities such as Memphis, Tennessee; Birmingham, Alabama; Pittsburgh; St. Louis; and Baltimore transitioned over the previous 12 months from markets that favor buyers to ones that favor renters. 

Within the top 10 metros that favor renting over buying, the disparity in monthly payments for a starter home compared to rents was stark. With average monthly payments for a starter home exceeding rents by $1,950, or 95.6%, these markets are popular among tech workers and other high-earning professionals. 

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AI isn’t just a buzzword to these housing executives

How six companies are leveraging artificial intelligence

Are you intrigued by AI or tired of hearing about it? At the recent ICE experience conference, I talked to a lot of mortgage lenders and tech folks about what’s making a difference in their businesses. Many were excited about the current or potential use cases for artificial intelligence, while others were a bit more jaded. Will AI turn out to be just the latest buzzword, akin to blockchain and cloud computing in years past?

I’ve interviewed more than 25 tech executives since September for HousingWire’s HousingStack newsletter and to a person they are bullish on AI. Many of these executives are already seeing efficiencies and real gains from AI. Others are in the process of leveraging it for bigger projects and better ROI. Below are excerpts that show how some of those executives are using AI. You can find every interview here

Chad Roffers, Concierge Auctions CEO:

We’re in an environment that is hyper-competitive. In the past, industries would drive technological change — a consumer didn’t realize they needed something until industry built it. But now, especially in real estate, the consumer is pulling the industry along. The consumers want the benefits of tech they have in other aspects of their lives and they are the ones demanding tech innovations. The people and companies in the real estate industry who are recognizing that and accepting it and getting on with it rather that working like they did 10 years ago are the people who are winning.

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Mortgage rates rise following a surge in Treasury yields

Supply is also increasing, with Altos Research showing 24% more homes on the market than a year ago

Mortgage rates rose this week as the yield on the benchmark 10-year Treasury note inched up. As of Monday, the yield on the 10-year U.S. Treasury note was about 4.25%, according to Tradeweb, up from 3.86% at the end of last year. 

As a result, HousingWire’s Mortgage Rates Center showed the average 30-year fixed rate for conventional loans at 7.16% on Tuesday, up from 7.07% one week earlier. At the same time one year ago, the 30-year fixed rate averaged 6.53%. Meanwhile, the 15-year fixed rate averaged 6.51% on Tuesday, up from 6.5% one week earlier.

“The 10-year yield is up a few basis points this week as the market gets ready to digest the next big piece of economic data: Friday’s PCE inflation report. As the 10-year yield moves higher, mortgage pricing should move with it, but the mortgage spreads are having a good week, which is encouraging news,” HousingWire lead analyst Logan Mohtashami said.

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