According to a recent study, the metropolitan Atlanta area leads the nation in cities where it is cheaper to rent rather than buy a home.
The data, compiled in Realtor.com’s June 22 report, shows that the trend of higher home prices has flipped from what it was just a year ago.
“Eight of the top 50 metros flipped from having monthly buy costs lower than monthly rent costs in 2021 to having monthly rent costs lower than monthly buy costs in 2022, and one metro flipped from favoring renting to favoring buying since last year,” the report says.
Why Is Renting Cheaper Than Buying a Home Right Now?
The report indicates that interest rates, which recently eclipsed the 5% mark, are a major factor in putting homeownership out of the reach of many people.
Due to recent actions of the Federal Reserve, the average 30-year fixed mortgage rate was 5.52% in June 2022. Just five months ago in January, that figure was 3.45%.
Let’s look at the metro areas where it is cheaper to rent than buy a home, according to Realtor.com.
Cheapest Metro Areas For Renting Vs. Buying A Home
| Metro | Overall Median Rent | Overall Rent YY | Studio Median Rent | Studio Rent YY | 1-br Median Rent | 1-br Rent YY | 2-br Median Rent | 2-br Rent YY |
| Atlanta-Sandy Springs-Roswell, GA | $1,858 | 10.8% | $1,718 | 14.6% | $1,731 | 11.4% | $2,065 | 9.4% |
| Austin-Round Rock, TX | $1,864 | 19.6% | $1,534 | 22.8% | $1,720 | 23.5% | $2,050 | 17.0% |
| Baltimore-Columbia-Towson, MD | $1,820 | 9.6% | $1,451 | 2.6% | $1,716 | 9.2% | $1,940 | 10.2% |
| Birmingham-Hoover, AL | $1,278 | 9.8% | $982 | -3.8% | $1,186 | 8.5% | $1,343 | 11.5% |
| Boston-Cambridge-Newton, MA-NH | $2,966 | 23.6% | $2,499 | 24.3% | $2,757 | 19.9% | $3,305 | 25.6% |
| Buffalo-Cheektowaga-Niagara Falls, NY | $1,345 | 10.0% | $1,125 | 2.7% | $1,195 | 8.7% | $1,495 | 8.9% |
| Charlotte-Concord-Gastonia, NC-SC | $1,752 | 18.4% | $1,619 | 20.9% | $1,659 | 19.4% | $1,880 | 12.1% |
| Chicago-Naperville-Elgin, IL-IN-WI | $2,000 | 14.3% | $1,700 | 25.9% | $1,960 | 15.3% | $2,200 | 12.5% |
| Cincinnati, OH-KY-IN | $1,499 | 9.1% | $1,200 | 10.6% | $1,438 | 9.3% | $1,626 | 5.8% |
| Cleveland-Elyria, OH | $1,432 | 12.1% | $948 | 6.8% | $1,317 | 8.6% | $1,593 | 16.5% |
How To Rent An Apartment In Atlanta Right Now
Atlanta’s rental market has not been for the faint of heart lately. Prices have shot upward over the past 12 months, but there are signs we could see some relief soon.
If you’re looking for an apartment right now, the first thing you need to do is make sure you have a firm budget for rent.
Don’t get misled by amenities are how large the apartment is, get what you can afford.
For example, if your monthly income is $3,000, your monthly rent should be around $1,000.
Typically, you will also need to have the first and last month’s rent. So if you’re renting a $1,000-a-month apartment, you will need to set aside an entire month of income to get the key.
Here’s how to get an apartment for cheap.
Final Word
If you’re interested in buying a home, don’t think you’ll never achieve your goals. Stick to it. Check out our Real Estate Resource Page.
See The Latest Atlanta Real Estate News At AtlantaFi.com.
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