[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-565112-105":3,"detail-sidebar-cat-1-en-105":74,"doc-detail-565112-en":120},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":67,"head_meta":69,"extra_data":71,"updated_unix":73},105,"en","two-charts-housing-affordability-112125-mortgage-rates-vs-rental-cost-parity","Two Charts - Housing Affordability - 11.21.25 - Mortgage rates vs. rental cost parity","","Explores housing affordability by comparing projected monthly homeowner costs against renter costs under different mortgage-rate scenarios. It explains how higher mortgage rates and rising U.S. home prices have shifted the economics of ownership relative to renting since historic pandemic lows. Pretium estimates mortgage rates would need to fall about 2.5 percentage points (roughly 250 bp) to restore cost parity, a move not reflected in most forecasts. Concludes renting remains more cost-effective for the foreseeable future.",{"@graph":14,"@context":66},[15,34,49],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/template/","Template",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/template/posters/","Posters",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/template/two-charts-housing-affordability-112125-mortgage-rates-vs-rental-cost-parity/565112/",4,{"url":32,"name":10,"@type":35,"author":36,"headline":10,"publisher":39,"fileFormat":42,"inLanguage":8,"description":12,"dateModified":43,"datePublished":43,"encodingFormat":42,"isAccessibleForFree":44,"interactionStatistic":45},"DigitalDocument",{"name":37,"@type":38},"Đào","Person",{"url":19,"name":40,"@type":41},"DocShare","Organization","application/pdf","2026-10-12",true,{"@type":46,"interactionType":47,"userInteractionCount":4},"InteractionCounter",{"@type":48},"ViewAction",{"@type":50,"mainEntity":51},"FAQPage",[52,58,62],{"name":53,"@type":54,"acceptedAnswer":55},"What changed in the economics of owning versus renting over the past five years?","Question",{"text":56,"@type":57},"Sharply higher mortgage rates combined with sustained home price appreciation have materially increased the monthly cost of owning a home relative to renting.","Answer",{"name":59,"@type":54,"acceptedAnswer":60},"According to Pretium, how much would mortgage rates need to fall to reach cost parity?",{"text":61,"@type":57},"Mortgage rates would need to decline by an estimated 2.5 percentage points, about 250 bp, from roughly 6.2% to about 3.7%, holding other variables constant.",{"name":63,"@type":54,"acceptedAnswer":64},"What does the document predict about the outlook for renting and mortgage rates?",{"text":65,"@type":57},"Most housing analysts expect mortgage rates to remain relatively stable or drift modestly higher, so renting is expected to remain the more cost-effective option and support positive demand for single-family rentals.","https://schema.org",{"og:url":32,"og:type":68,"og:title":10,"og:site_name":40,"og:description":12},"article",{"robots":70,"canonical":32},"index,follow",{"doc_id":72,"site_id":7},565112,1791846726,{"code":4,"msg":75,"data":76},"success",[77,82,87,92,96,101,106,111,116],{"id":78,"doc_module":22,"doc_module_name":25,"category_name":79,"show_sort_weight":80,"slug":81},11,"Presentations",90,"presentations",{"id":83,"doc_module":22,"doc_module_name":25,"category_name":84,"show_sort_weight":85,"slug":86},12,"Resumes",80,"resumes",{"id":88,"doc_module":22,"doc_module_name":25,"category_name":89,"show_sort_weight":90,"slug":91},14,"Invoices",70,"invoices",{"id":93,"doc_module":22,"doc_module_name":25,"category_name":29,"show_sort_weight":94,"slug":95},15,60,"posters",{"id":97,"doc_module":22,"doc_module_name":25,"category_name":98,"show_sort_weight":99,"slug":100},16,"Social Media",50,"social-media",{"id":102,"doc_module":22,"doc_module_name":25,"category_name":103,"show_sort_weight":104,"slug":105},17,"Forms",40,"forms",{"id":107,"doc_module":22,"doc_module_name":25,"category_name":108,"show_sort_weight":109,"slug":110},18,"Letters",30,"letters",{"id":112,"doc_module":22,"doc_module_name":25,"category_name":113,"show_sort_weight":114,"slug":115},21,"Paper Templates",5,"papers-templates",{"id":117,"doc_module":22,"doc_module_name":25,"category_name":118,"show_sort_weight":4,"slug":119},158,"General","general-158",{"code":4,"msg":75,"data":121},{"doc_id":72,"user_id":122,"nickname":37,"user_avatar":123,"doc_module":22,"category_id":93,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":124,"file_id":125,"file_url":126,"file_type":127,"file_size":128,"view_count":4,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":22,"language":129,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":130,"faqs":131,"seo_title":132,"seo_description":12,"update_tm":73,"read_time":4},1374402968488,"https://ap-avatar.wpscdn.com/davatar_29158cc5080c5b710cf443261637dec0","TWO CHARTS:   \nHOUSING AFFORDABILITY  \nHow low do mortgage rates need to go to close the disparity between owning and renting…and will rates get there?  \nOver the past five years, a combination of sharply higher mortgage rates and sustained home price appreciation has fundamentally reshaped the economics of homeownership relative to renting. Mortgage rates, which reached historic lows during the pandemic, have since more than doubled, while U. S. home prices—supported by constrained supply—have continued to rise. Consequently, the monthly cost of owning a home, inclusive of mortgage payments, insurance, and taxes, now materially exceeds the cost of renting a comparable property.  \nTo restore cost parity between owning and renting, Pretium estimates that mortgage rates would need  \nto decline by an estimated 2.5 percentage points from current levels — i.e., from 6.2% to 3.7% — holding other variables constant. A move of that magnitude isnot reflected in prevailing market expectations; most housing analysts anticipate mortgage rates will remain relatively stable or drift modestly higher over the coming years. As a result, renting is expected to remain the more cost-effective option for the foreseeable future.  \nThe bottom line: The current market environment supports a positive outlook for single-family rental demand, as households continue to seek high-quality housing options that combine flexibility with relative cost efficiency.  \nMortgage rates need to drop 250 bp to get to parity  \nForecasts expect mortgage rates to flatten  \n Homeowner cost  Renter cost  \n2016 2018 2020 2022 2024 2026 Estimated U. S. monthly homeowner vs. renter costs1  \n Mortgage rate  Forecast  \n%  \nMedian forecast, 30-year mortgage rate2  \n1. Source: Freddie Mac, NAR, Zillow, Pretium, data through October 23, 2025. Homeowner cost is calculated as the monthly principal, interest, tax, insurance and maintenance cost for a home selling at the U. S. median sales price, financed by an 80% LTV conventional mortgage, with annual tax, insurance and maintenance cost estimated as 2% of property value. Rental cost is estimated by the Zillow U. S. single-family rental index. Forward homeowner and renter costs are projected assuming a change in mortgage rate, with no changes to rents or home prices. 2. Source: Fannie Mae, Freddie Mac, MBA, John Burns, Pretium, data through October 26, 2025. Mortgage rate forecast represents the median of the Fannie Mae, MBA and John Burns projections.  \nStatements throughout this document, including those regarding the market, represent the opinions and beliefs of Pretium. There can be no assurance that these will materialize.","cbCailcpct3dQ9A9","https://ap.wps.com/l/cbCailcpct3dQ9A9","pdf",72595,"English","# Housing Affordability\n## Mortgage rates needed for parity\n## Forecasts for mortgage rate path\n## Estimated homeowner vs renter costs","[{\"question\":\"What changed in the economics of owning versus renting over the past five years?\",\"answer\":\"Sharply higher mortgage rates combined with sustained home price appreciation have materially increased the monthly cost of owning a home relative to renting.\"},{\"question\":\"According to Pretium, how much would mortgage rates need to fall to reach cost parity?\",\"answer\":\"Mortgage rates would need to decline by an estimated 2.5 percentage points, about 250 bp, from roughly 6.2% to about 3.7%, holding other variables constant.\"},{\"question\":\"What does the document predict about the outlook for renting and mortgage rates?\",\"answer\":\"Most housing analysts expect mortgage rates to remain relatively stable or drift modestly higher, so renting is expected to remain the more cost-effective option and support positive demand for single-family rentals.\"}]","Two Charts - Housing Affordability - 11.21.25 - Mortgage rates vs. rental cost parity | PDF"]