Only four major markets favor owning a home over renting
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Home prices in major housing markets nationwide have declined as demand for homeownership weakened, according to the latest national BH&J Buy vs. Rent index.
The index showed that people in 19 out of 23 metros preferred renting and reinvesting in stocks and bonds over owning a home.
These metros included Atlanta, Boston, Cincinnati, Dallas, Denver, Honolulu, Houston, Kansas City, Los Angeles, Miami, Milwaukee, Minneapolis, Philadelphia, Pittsburgh, Portland, San Diego, San Francisco, Seattle, and St. Louis.
The lessening demand for homeownership in these cities also tends to push home prices down, according to the research.
"This is quite worrisome," said Eli Beracha, real estate economist and co-creator of the index. "However, the trend towards lower BH&J scores is a good sign that the nation's housing markets are pulling back from the edge of potential disaster."
The slowing property prices combined with declining mortgage rates and a slowdown in the stock market have caused the drops, the creators of the index said.
"Housing markets will either soon experience a slow reversion to a long-term pricing trend or experience a rapid fall in prices below this same trend with a slow reversion," said Ken Johnson, real estate economist and one of the creators the BH&J Index. "We hope for the former and fear the latter."
