Zillow: Rent-to-Buy Break-Even Falls to Six Years, Listings Down 4.1%
Z•Zillow’s analysis finds rent-to-buy break-even at six years, with four-year horizons in Columbus, Memphis and Buffalo and no break-even within 30 years in San Francisco, San Jose or New Orleans. In May, new listings fell 4.1% YoY, home sales dropped 2.9% and values rose 0.6% to $368,720.
1. Rent-versus-Buy Analysis
Zillow’s rent-versus-buy report models 30-year fixed-rate mortgages across the 50 largest U.S. metros, factoring in mortgage payments, taxes, insurance, maintenance, rent and potential investment returns on unspent down payments. It shows a national break-even of six years—down from 8.4 years in 2023—with four-year payoffs in Columbus, Memphis and Buffalo and no cross-over within 30 years in San Francisco, San Jose or New Orleans.
2. May Market Report
In May, new U.S. listings declined 0.8% month-over-month and 4.1% year-over-year, while home sales rose 4.8% MoM but fell 2.9% YoY. Typical home values climbed 0.6% to $368,720, mortgage payments increased 1.1% to $1,861, and active inventory edged up 1% from last year.
