Photo courtesy Charleston's TheDigitel via Creative Commons

Photo courtesy Charleston’s TheDigitel via Creative Commons

DFW rents were 6.2 higher last year, averaging $919 per month, but demand still soared, with North Texas leading the nation in apartment rentals, and vacancies at a 13-year low, according to new real estate research from Zillow and MPF Research.

The increased rent translated to an extra $600 million paid to landlords last year, Zillow reported. For North Texans, that meant a median increase of $35 a month, higher than the nationwide rate of $26.

Rising rents are nothing new, said Zillow Chief Economist Stan Humphries.

“Over the past 14 years, rents have grown at twice the pace of income due to weak income growth, burgeoning rental demand, and insufficient growth in the supply of rental housing,” he said. “This has created real opportunities for rental housing owners and investors, but has also been a bitter pill to swallow for tenants, particularly those on an entry-level salary and those would-be buyers struggling to save for a down payment on a home of their own.”

For 2015, expect more of the same.

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Renting Vs. Buying screenshot

A friend of mine has been following our recent analysis of demographic groups more likely to rent or buy, especially this story by Candace Tharp and this breakdown of Census info, and sent me a link to this online lecture from a Khan Academy instructor that dissects the costs associated with renting versus buying a home.

The instructor, who lives in Northern California’s Silicon Valley, attempts to compare the cost of renting versus buying two identical homes. About 40 seconds in, though, my journalist spidey sense went off when the instructor started making generalizations and using absolutes, saying “Well isn’t buying always better than renting?”

Well, isn’t Veuve Clicquot always better than Cook’s? I may think so, but that’s just my opinion. 

That’s where the instructor jumps off into criticizing homeowners for peer pressure, Realtors for, you know, wanting you to buy so they can make a living making sure you get the best deal possible for your new home/home you are selling.

Really, this looks to me like not only an oversimplification of a naturally cyclical market, but a gross oversimplification of a very complicated buying process. Heck, the instructor even admits that he’s oversimplifying things. He’s basically bending his logic to his assumptions.

So, watch the lectures and tell me what you think: Is it always better to buy than rent, and what is up with the ridiculous rents in Silicon Valley? I’d move to Texas instead!