The U.S. real estate market shows it costs twice as much to buy a home as it does to rent one, crossing a threshold not seen since 2006. John Burns Research & Consulting study reveals ownership costs exceed the reach of all but the wealthiest buyers. Entry-level home ownership is out of reach for many.

Renting is more affordable than owning, with Redfin estimating the median rent at $1,633 in the U.S. The “30% rule” for mortgage payments means buyers need to earn around $10,000 monthly to afford a $3,545 mortgage, while renters only need around $4,800 for median rent.

Median income in the U.S. is $77,000, with the median rent of $1,633 within reach. Availability favors renters, with a surplus of apartments and rentals. Developers are building more apartments, creating opportunities for renters to negotiate lower prices, such as in Austin, Texas.

The cost gap between owning and renting has steadily grown, with a sharp increase since the pandemic. JBREC’s research shows a widening disparity, now more than double the cost of renting. The outlook suggests owning will cost 95% more than renting by 2028, with minimal improvement expected.

Read more at Yahoo Finance: Buying A Home Is Double The Cost Of Renting For The First Time In 20 Years