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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 76 September 2024 J O U R N A L 7. Syracuse, NY The upstate metro area of Syracuse, New York, is among the cheapest for homeowners, in sharp contrast to New York City. The average monthly cost of homeownership in Syracuse is $2,295, which is $740 more than the average monthly rent. 8. Scranton-Wilkes-Barre, PA Rent in Scranton is reasonably priced at $1,276 per month, and buying a proper- ty doesn't cost much more. The monthly total is $2,056, which is only $780 more than rent. 9. Cleveland-Elyria, OH Cleveland, the second Ohio metro in the top 10, has cheaper housing and smaller mortgage payments than the majority of the nation. Instead of renting, residents pay $874 more a month for property ownership. 10. Augusta-Richmond County, GA-SC Augusta, whose average monthly homeownership expenses are $2,331, completes the top ten. In contrast, the average monthly rent in this metro area is $1,436, meaning that renting is $895 less expensive than owning a home. Where Does it Make the Most Sense to Rent? The top 10 metro areas with the biggest price differential between total homeownership and rental expenses: 1. San Jose-Sunnyvale-Santa Clara, CA 2. San Francisco-Oakland-Berkeley, CA 3. Los Angeles-Long Beach-Anaheim, CA 4. San Diego-Chula Vista-Carlsbad, CA 5. Urban Honolulu, HI 6. Oxnard-Thousand Oaks-Ventura, CA 7. Seattle-Tacoma-Bellevue, WA 8. Denver-Aurora-Lakewood, CO 9. Salt Lake City, UT 10. Boston-Cambridge-Newton, MA-NH The largest disparity between rent and homeownership expenses is found in the least buyer-friendly metro areas. The typical rent prices in these metro areas are 62% to 164% more than mort- gage payments alone. The difference, when all expenses are taken into account, can reach an astounding $11,303. San Jose, California, is the metro area with the biggest disparity between average rent and total housing expendi- tures. The cost of property ownership in San Jose is an astounding $11,303 more per month for inhabitants. Even though San Jose rent is highly pricey on average ($3,360 per month), it's still far less ex- pensive than buying a property. The following California metro areas made the list: Oxnard, Los Angeles, San Francisco, and San Diego. The cost of homeownership in these places is between $4,961 and $7,615 higher than that of renting. Outside California, urban Honolulu, Seattle, Denver, Salt Lake City, and Boston are also among the 10 least homebuyer-friendly metros. Mortgage Expenses vs. Rent Costs Mortgage payments are by far the largest monthly expense of homeown- ership, even though there are numerous other fees involved as well. According to Creditnews estimates, some 78 of the top 100 metro areas have mortgage payments that are more than average rentals. These metro areas are topped by Urban Honolulu, Hawaii, and the California metros of San Jose, San Francisco, Los Angeles, and San Diego. The average monthly mortgage payment in each of these metro areas is at least $1,000 more than the average rent. Conversely, in 22 metro areas—New Or- leans, Jackson, Mississippi, El Paso, Texas, Chicago, IL-IN-WI; Syracuse, New York; and Pittsburgh—the mortgage payment is less than the average rent payment. MORE MOVING INTO AT-RISK AREAS A new report from Redfin has found that scores of people are moving to regions of the nation endangered by wildfires, flooding, and extreme heat. America's high-fire-risk counties saw 63,365 more people move in than out in 2023, with much of that net inflow consisting of those moving to Texas. However, the story differs from state to state, as among California's high- fire-risk areas, more people left than moved in. This trend marks a reversal from 2022's data analysis, indicating that people may be growing more responsive to fire risk in the Golden State. Data for the study is based on a Redfin analysis of domestic migration data from the U.S. Census Bureau and climate-risk scores from First Street. Census migration data for 2023 covers July 2022-July 2023, and Census migration data for 2022 covers July 2021-July 2022. Redfin defines a high- risk county as one that ranks in the top 10% when it comes to the share of homes facing high fire or flood risk. Meanwhile, for those at risk of flood- ing, the nation's high-risk counties saw 16,144 more moves in than out, led by the Sunshine State of Florida which drove a large share of the migration to high- flood-risk counties, but a smaller share than it did in 2022. The opposite occurred in low-risk ar- eas; America's low-fire-risk counties saw a net outflow of 38,401 people in 2023, and low-flood-risk counties experienced a net outflow of 6,892. Insurance as a Factor "Ballooning insurance costs and inten- sifying natural disasters are driving thou- sands of Americans out of risky areas, but those people are quickly being replaced by other people for whom climate change isn't the top concern," Redfin Senior Economist Elijah de la Campa said. "For a lot of Americans, things like cost of living and proximity to family take precedence over catastrophe risk, which can feel less immediate and more abstract. But the cost-benefit calculus seems to be shifting in places like California and Florida, where skyrocketing home insurance costs and an uptick in high-profile disasters have had a tangible impact on residents and made national news." Roughly one in 11 (or 8.8%) people who plan to move soon cited concern over natural disasters or climate risk as