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75 September 2024 J O U R N A L multigenerational home, 31% say they are thinking about it. In fact, 33% of Gen X-ers and millennials said they are considering the move, followed by 28% of Gen Zs and 25% of baby boomers. Most respondents, three of four, would rather live at home with older family members than pay for elder care facilities. And a large majority, some 83%, would choose to have a family member live in their homes to help take care of young children, rather than pay for childcare. The biggest downside to a multigen- erational household, 62% of respondents who live with family said, is a lack of privacy. Establishing clear boundaries and expectations was a challenge cited by 34% of multigenerational household residents who responded. Of particular interest to sponsors of the study, who are in the home construction business, the house itself is vital to the suc- cess of multigenerational life. Just three in 10 surveyed said their homes include sep- arate living areas for different generations, a lack that researchers call a "potential barrier" to multigenerational living. RENTING VS. OWNING: THE TRUE COSTS OF HOMEOWNERSHIP F or many American families, mov- ing from renting to homeown- ership has become considerably more difficult as a result of the housing affordability issue, according to new Creditnews data. In reality, the monthly cost difference between owning a home and renting, given current mortgage rates and home prices, can reach $10,000 in some major cities. But in what way? Key Findings: » All costs included, owning a home is more expensive than renting in all of America's 100 most populous metro areas. » The monthly cost difference between homeownership and renting varies greatly across the country. It can be as high as $11,303 in San Jose, and as low as $567 in Jackson, Mississippi. » The metros with the highest home- ownership costs relative to renting are mainly located on the West Coast, in Hawaii, and parts of the Northeast. » Meanwhile, the metros with the smallest difference between home- ownership costs and renting are in the South and Rust Belt. » Excluding other housing expenses, mortgage payments are lower than the average rent in 22 of the metros. That's another reminder for home- buyers to consider all housing costs before pulling the trigger. Many renting vs. buying studies only take mortgage costs into account. The mortgage itself, however, is only one aspect of homeownership expenses—as many homeowners are aware. The analysis offers a far more thor- ough rent vs buy comparison by account- ing for all costs associated with buying, such as taxes, insurance, HOA dues, and remodeling expenses in America's 100 most populated metro areas and contrasts average rent pricing with those costs. Where Does It Make the Most Sense to Purchase a Home? The top 10 metros with the smallest difference between renting and total homeownership costs: 1. Jackson, MS 2. El Paso, TX 3. Toledo, OH 4. New Orleans-Metairie, LA 5. Pittsburgh, PA 6. McAllen-Edinburg-Mission, TX 7. Syracuse, NY 8. Scranton-Wilkes-Barre, PA 9. Cleveland-Elyria, OH 10. Augusta-Richmond County, GA-SC Because their property prices are far lower, the most buyer-friendly metro areas have the smallest disparity between their overall housing expenditures and their rent. In all of these metro areas, home- ownership still costs more than renting, but the difference is less than $900. For homeowners who are building equity by owning a home rather than renting, that's a fair trade-off. 1. Jackson, MS The disparity between average rent and total housing costs is lowest in Jackson. Because the average property price in the area is less than $200,000, residents only have to pay $567 more each month to purchase a home. 2. El Paso, TX The second-most homeowner-friendly metro area is El Paso. Due in significant part to decreased home prices and compara- tively higher rent costs, residents incur an additional $646 in monthly homeownership expenditures. more every month to be a homeowner—because the average home costs less than $200,000. 3. Toledo, OH Toledo, the first Midwestern metropolis in the top 10, provides good value for prospec- tive homeowners. At $189,228 for a typical property, one can afford the modest mortgage payment of $1,070. Renters pay $1,220 on average per month, which is $710 less than what owners spend. 4. New Orleans-Metairie, LA In New Orleans, Louisiana, the total monthly cost of homeownership is $2,395 while the monthly cost of rent is $1,678. In other words, people only spend an additional $717 to own a home. 5. Pittsburgh, PA Pittsburgh is reasonably priced for both tenants and homeowners. With an average home price of $217,285 comes $2,178 in total costs associated with own- ing. That is only $718 more than the rent. 6. McAllen-Edinburg-Mission, TX Affordable real estate is available in McAllen, the second-ranked Texas metro area in the top 10. It is one of three metro areas where rent for a whole month is less than $2,000. There is a $727 monthly difference between rent and buying.