The BH&J Index is a quarterly report that attempts to answer the question:
In today’s housing market, is it better to rent or buy a home?
The index examines the entire US housing market and then isolates 23 major cities for comparison. The researchers “measure
the relationship between purchasing property and building wealththrough a buildup in equity versus renting a comparable property andinvesting in a portfolio of stocks and bonds.”
While most of the metropolitan markets examined moved further into
buy territory (15 of the 23), markets like Dallas, Denver, and Houston
are currently deep into rent territory. In these three markets, it is
estimated that renting will top homeownership 7 out of 10 times.
Due to a lack of inventory, the home prices in the Dallas, Denver, and Houston, areas have increased by 13%, 11.4%, and 7.3%
respectively. Home prices in these areas will begin to return to more
normal levels once residents realize that renting is not the best
option, therefore bringing home affordability back as well.
The majority of the country is
strongly in buy territory. Buying a home makes sense socially and
financially, as rents are predicted to increase substantially in the
next year. Protect yourself from
rising rents by locking in your housing cost with a mortgage payment now.
To Find Out More About the Study: The
BH&J Index and other FAU real estate activities are sponsored by
Investments Limited of Boca Raton. The BH&J Index is published
quarterly and is available online at