Your inside source for real estate, development and construction information serving the counties of Mecklenburg, Union & Iredell VOLUME 107 NUMBER 6 ■ MECKTIMES.COM
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TUESDAY, FEBRUARY 7, 2023 ■ $2.00
40% of employers changed benefit plans during pandemic, added remote work, behavioral health programs, and caregiver leave Page 2
Construction adds 28,000 employees in December
Renting more affordable than homeownership across most of the nation in 2023
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Beauxwright launches build-forrent townhome and retail development in Highland Creek Page 4
ENNICO: My Entrepreneur of the Year Nomination (Part 1 of 2) Page 5
NOVAK: Some people are more than just difficult: How to recognize a personality disorder Page 6
Stocks drift on Wall Street following smaller Fed rate hike Page 7
ATTOM has released its 2023 Rental Affordability Report, which shows that the average three-bedroom rent is more affordable than owning a comparably sized median-priced home in 210, or 95 percent, of the 222 U.S. counties analyzed for the report. Both renting and owning a threebedroom home are significant financial burdens for households around the U.S., consuming more than one-third of average wages in most major housing markets. But average rents still require a significantly smaller portion of wages than major homeownership expenses on three-bedroom properties. That gap has emerged even as rents have risen faster than home prices over the past year in roughly half the nation. The analysis for this report incorporated 2023 rental prices and 2022 home prices, collected from ATTOM’s nationwide property database, as well as publicly recorded sales deed data licensed by ATTOM (see full methodology below). Those two data sources were combined with average wage figures from the Bureau of Labor Statistics “What a difference a year makes,” said Rick Sharga, executive vice president of market intelligence for ATTOM. “Last year our study concluded that it was more affordable to own than to rent in 60 percent of the markets analyzed. But with mortgage rates doubling, monthly payments for new homeowners rose by 45-50 percent compared to a year ago, even though home price appreciation has slowed down dramatically. This has made renter more affordable in the majority of markets, despite rental rates
continuing to rise over the past year.” The report shows that renting is more affordable in most of the country following a year of mixed market patterns around the country, flowing from a rapidly changing housing market. Average three-bedroom rents climbed more than median sales prices on single-family homes in 46 percent of the markets analyzed. That happened at a time when a decade-long run of price spikes slowed considerably across the U.S., amid rising mortgage rates, high inflation, a declining stock market and other factors that cut into what potential buyers could afford. Still, rents didn’t go up fast enough to keep them from being the more financially viable option for workers earning average local wages in most markets. Average rents commonly consume a smaller portion of average wages than major home ownership by anywhere from 5 to 30 percentage points. The patterns hold throughout the country, but are most pronounced in the most populous urban markets. Rents rising faster than home prices in half the nation Average rents for three-bedroom homes are increasing more than median prices for single-family homes in 103 of the 222 counties analyzed in this report (46 percent). Counties were included in the report if they had a population of 100,000 or more, at least 100 sales from January through November of 2022, and sufficient data. The most populous counties where three-bedroom rents are rising faster than median sales prices for single-family homes are Cook County (Chicago), IL; San Diego
County, CA; Orange County, CA (outside Los Angeles); Kings County (Brooklyn), NY, and Miami-Dade County, FL. The largest 119 counties where sales for single-family homes are rising faster than rents are Los Angeles County, CA; Harris County (Houston), TX; Maricopa County (Phoenix), AZ; Dallas County, TX, and Clark County (Las Vegas), NV. Widest affordability gaps between renting and owning in most populous counties Renting the average three-bedroom home is more affordable compared to owning a single-family home in the nation’s largest counties, with populations of at least 1 million. Among 46 counties with a population of at least 1 million included in the report, the biggest gaps are in Honolulu, HI (average three-bedroom rents consume 66 percent of average local wages while single-family home ownership expenses consumes 140 percent); Alameda County (Oakland), CA (47 percent for renting versus 110 percent for owning); Santa Clara County (San Jose), CA (28 percent versus 83 percent); Orange County, CA (outside Los Angeles) (73 percent versus 125 percent) and Contra Costa County, CA (outside San Francisco) (49 percent versus 90 percent). The only county with a population of more than 1 million where it is more affordable to buy than rent is Cook County (Chicago), IL (average rents consume 40 percent of average local wages while home ownership consumes 38 percent). The biggest gaps among counties in the
PLEASE SEE RENTING ON PAGE 3
“We’re excited to be creating a unique new residential option in this popular area of Charlotte,” said Andy Lucas, Beauxwright
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