The financial advantage Southern California home buyers hold over renters has rapidly shrunk in recent months as home prices and mortgage rates have risen, according to a new report.
It is still cheaper to buy a home rather than rent a similar property in Southern California, though, according to a Trulia analysis released Thursday. If a buyer purchased a house in Los Angeles County this summer, lived there for seven years then sold it, he or she would have saved 21% over renting a similar property, the real estate website said.
That’s down from a 35% savings in the winter. In upscale Orange County, a buyer would save 20% if he or she purchased this summer; in San Diego County 21%; in Ventura County 22%.
This year’s rapidly rising prices — and more recently an increase in mortgage rates — have frustrated many would-be home buyers, causing some to bow out of the marketplace and remain renters.