FAIR OAKS (CBS13) — For the first time in five years, the Sacramento-area housing market is being called a renter’s market, and experts say that’s changing the local housing landscape.
There’s a house in Fair Oaks that’s not for sale. But it’s on the market for renters who aren’t quite ready to buy, or can’t pull the trigger on a home purchase. And that might be a good thing.
According to new numbers released this month by Deutsche Bank and the Wall Street Journal, the greater Sacramento region is now on a list of cities and suburbs that’s gone from a buyer’s market to a renter’s market.
The capital city region is one of five areas nationwide where it’s cheaper to rent than to buy. The others are Phoenix, Arizona; San Bernardino; Riverside; Austin Texas; and Northern Virginia.
Why is this happening? Rising home prices and a tougher market for buyers to qualify are working to make it more difficult to buy. Before the mortgage meltdown, anyone with a pulse could qualify for a loan. The standards have gotten tighter.
In addition, there are plenty of properties to rent, and people are turning homes into rentals. Investment companies are coming in and buying up homes to cash in.
All of that extra property is stabilizing rental prices.
Renting that Fair Oaks home would cost about $2,250 a month, compared to $3,450 if you bought it. Something to think about in a changing market.