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10 sats \ 3 replies \ @m00ninite 1 Mar \ on: Demystification: The Monthly Cost of Buying vs. Renting a House in America charts_and_numbers
That first graph has my head spinning. How is it that most of the time, renting is cheaper than owning? That doesn't even make any sense, but there it is.
Well it's cheaper but if you look at what you have after X decades, when renting you're basically throwing money out of the window, when instead for buying at least you have an asset you can sell. That's maybe why it's more expensive, just a guess.
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When I sit down and think about it more, it's probably because most places that get rented have been owned by the landlord for a decade or more. So they're paying 2010 mortgage prices monthly, rather than what today's number is.
So say they got a house in 2010 they're paying $1k/mo for, and are renting it out today, they're able to set their rent according to that price. The current market rate for a new house could be $3k/mo, but it doesn't really matter
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That's exactly that, especially with the subletting boom, most RE has become a source of income, but are few of the places where isn't regulated and always become harder to manage.
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