Renting vs Buying: Housing Market Analysis

The article examines whether it is cheaper to rent or buy property in the United States, analyzing house-price data across every American county. The analysis reveals a surprising finding, suggesting that homeownership is becoming more appealing in certain regions. The article uses an interactive map to show where renting or buying is more cost-effective, providing insights into America's housing market.

The Economist has released its European version of the Carrie Bradshaw index, which assesses the affordability of renting alone in major European cities. The index reveals that the average earner struggles to afford rent in all but eight of the cities examined. The article discusses the challenges of finding affordable housing in big cities, drawing parallels with the popular TV series 'Sex and the City'.

The article discusses the current state of America's housing market, specifically whether it is more cost-effective to rent or buy a home. The Economist's analysis shows that, on average, buying is now 1.5 times cheaper than renting across the US. However, this varies greatly depending on the location. The article highlights that while house prices have risen by 9% since 2023, falling interest rates have kept mortgage payments relatively stable, increasing by only 7%. In contrast, market rents have risen by 16%. The article provides an interactive map that allows users to check the buy-to-rent ratio in different counties across America. It concludes that while buying is becoming more appealing in some areas, it remains unaffordable for many due to high house prices and rising rents.