Home purchases tip rental affordability in some areas

Rental affordability has changed in some markets.

Due to the continued improvement of the housing market, commercial property managers in some parts of the country may have experienced an improvement in the local  housing market, which could affect rentals, according to a report from Zillow.

Three-quarters of metropolitan statistical areas in the country give a homeowner the potential to break even in less than three years at current rates. Areas that take longer for a breakeven horizon are more fit for renting, at present, the report explained. These include areas such as San Jose, Oak Harbor, Washington, and Santa Cruz, California, which have points higher than seven years.

"Across most of the country, historic levels of affordability make buying a home a better decision than ever, especially considering rents have risen more than 5 percent over the past year," said Stan Humphries, chief economist for Zillow.

While it may be more affordable for some to purchase a home, this does not necessarily mean that consumers will be able to afford it with such tight lending restrictions that are in place for buyers, at the moment. This could mean that the rental pool will continue to grow for the time being.

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