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December 3, 2016

Toughest Markets for Renters to Become Home Owners

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Toughest Markets for Renters to Become Home Owners

First-time home buyers are facing tougher mortgage underwriting standards and tight inventories in the lower-priced home market, says National Association of REALTORS® President Steve Brown. It’s preventing some renters from purchasing homes, housing experts say. In some markets, renters are facing even more hurdles to reaching home ownership.

According to a recent analysis of 25 metro areas by SNL Real Estate, the following markets are proving to be the toughest markets for renters to break into home ownership.

  1. San Diego-Carlsbad-San Marcos, Calif.
    Median home price: $476,790
    Renters eligible to buy out of every 100 housing units: 5.49
  2. San Francisco-Oakland-Fremont, Calif.
    Median home price: $682,410
    Renters eligible to buy out of every 100 housing units: 5.7
  3. Boston-Cambridge-Quincy, Mass.-N.H.
    Median home price: $371,300
    Renters eligible to buy out of every 100 housing units: 8.4
  4. Miami-Fort Lauderdale-Pompano Beach, Fla.
    Median home price: $254,900
    Renters eligible to buy out of every 100 housing units: 10.21
  5. Riverside-San Bernardino-Ontario, Calif.
    Median home price: $263,600
    Renters eligible to buy out of every 100 housing units: 10.23
  6. Denver-Aurora-Broomfield, Colo.
    Median home price: $279,300
    Renters eligible to buy out of every 100 housing units: 10.39
  7. Washington, D.C.-Arlington-Alexandria, Va.-Md.-W.Va.
    Median home price: $368,000
    Renters eligible to buy out of every 100 housing units: 10.79

Source: “Toughest Markets for Renters Looking to Buy,” The Wall Street Journal (May 7, 2014)

Read more:

Now Renters Getting Priced Out, Too?
More Luxury Owners Renting Out Their Homes
U.S. in 'Worst Rental Affordability Crisis' Ever