One of the critical factors in the signs of a housing rebound is when it becomes cheaper to own than to rent.
According to an Associated Press article:
“An Associated Press analysis of 45 metro areas finds the gap between the monthly mortgage payment on a median-priced home and the median rent has shrunk from $777 a month to just $221 in the past three years.”
This number something you should keep an eye on. When it becomes cheaper to own than rent, more people will start buying than renting, it’s simple math.
