The housing market has skilled a collection of modifications over the previous couple of years — from record-high costs to ruthless competitors. However now, with some indicators signaling a cooling market (in sure locations, no less than), different areas are seeing shifts, notably an increase in demand for condominiums.
In February, the common value of a single-family residence went down by 0.7% from the identical interval final yr, whereas a median-priced rental skilled a 2.5% enhance, per data from the Nationwide Affiliation of Realtors.
In some areas, condos are much more costly for consumers than median-priced properties. In line with actual property analysts at Point2, there are as many as 20 U.S. cities the place that is occurring, together with Detroit, Michigan, which took the highest spot, with the common residence worth of $58,000 versus the common rental worth of $229,000 — a 75% distinction.
Associated: Condo Constructing Gross sales Are Dropping — However Renters Could Profit From Investor Droop
Detroit led the rankings by an extended shot. Second was Birmingham, Alabama, the place the common residence worth is $174,000 versus $246,000 for condos — a niche of 29%.
Whereas there are a number of causes individuals are drawn to condos versus homeownership — much less upkeep, repairs and utility prices — rental dwelling is not for everybody. So should you’re seeking to make the transfer from a constructing to a house, certainly one of these 20 cities could also be price wanting into.
Supply: Entrepreneur