Today’s Chart is from Zillow showing that typically the share of income spent on housing costs for homeowners, such as mortgage, taxes, and insurance, has been lower than what renters pay for rental units.
However, with the increases in costs starting in mid-2022, this has changed. As with all things, and those who have seen my presentations know, this imbalance between supply and demand will not endure, and rental rates will increase with more demand to rent, or homeowner’s costs will decline as demand falls, or some combination of the two.