Realtor describes the shift that's driving real estate 'across the board' in top markets
Dallas realtor Rogers Healy discusses a concerning report finding it is currently 60% cheaper to rent a starter home than to buy in each of the top 50 U.S. metros.
Despite the White House's unrelenting enthusiasm for the current state of the U.S. economy, a new study reveals renting has overwhelmingly become the more affordable option in major U.S. cities.
RENTING IS A BETTER BET IN MARKETS ACROSS THE US
Dallas realtor Rogers Healy argued there is a rise in consumers who have a "short-term" business strategy, causing a major shift in real estate across the country.
"I think it's shorter term thinking. You know, I think it's about just stacking chips and getting in. Even if interest rates are 7.25%, which is what we're dealing with today. I think people are thinking short-term with business logic leading them versus emotional logic. And I think that really has shifted real estate all across the board, especially in cities like Dallas. We've got a great run ahead of us," the Dallas realtor told "Fox & Friends" earlier this week.
The data showed that the monthly cost for a starter home in the largest 50 U.S. metros was roughly 60%, about $1,027, more than the monthly rent in those same markets on average.
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Across major U.S. cities such as Austin, Texas, and Seattle, Washington, for example, the monthly cost of owning a one to two bedroom home is more than $3,500, while renting a home is about $2,000.
"It's always kind of been cheaper to rent versus buy. I think that the part that people aren't mentioning is you got appreciation, and buying real estate is an investment, and you're going to have stuff that comes up that you don't deal with as a renter, whether it's property taxes, it's maintenance, and it's the stuff that happens out of nowhere, which is part of it. It's kind of always been cheaper to rent than buy," Healy explained to Fox News' Steve Doocy.
To conclude, the Texas-based realtor issued a valuable lesson for Americans looking to make the leap into the real estate market.
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"Save up. You know, I think that you don't have to live in the bullseye, especially if you're renting. And I think that this is some business advice. Save up if you want something you want to buy in a year or two years, etc. Start saving your money," Healy continued.
"70% of millennials want to buy their first home in the next couple of years. Save your money. And that's part of buying a home in the first place."
FOX Business' Daniella Genovese contributed to this report.