Houston Rental Real Estate

Has anyone seen how much houses are renting for in the Houston area? Houston houses for rent have skyrocketed in per month pricing in the past few years. Most people would be better off financially as far as their monthly payment is concerned if they bought a house. Still, people are renting instead of buying. Why is this the case?

Obviously, the entire U.S. economy has seen better days. Also, lenders have become more strict when it comes to qualifying people that want to borrow money because of all of the foreclosures and short sales that have happened in the last few years. People that own their homes outright are even trying rent to own programs since they know how hard it will be to sell their home. They usually come to an agreement with the tenants that will be occupying their home a certain amount that will go toward the down payment.
Some people with great credit and a good debt to income ratio still opt to rent rather than buy because of the economic conditions. They are afraid to lock themselves into a decision because they are worried about job security or just don't want to let go of the large down payment money. Still, how much more per month are we talking to rent a house in the Houston area rather than buy it?

How much more does it cost the average family to rent a house in Houston than own a home in the Houston area? The median single family home sale price is around $150,000 in Houston, TX. Property taxes in this city are usually around 3% and everyone is required to carry insurance on their homes. The mortgage payment including taxes and insurance on $150,000 home in this area should be right around $1,350 if you get a 6% rate for 30 years and put 5% down on the house. A lot of qualified buyers could get a lower interest rate or only put 3.5% down lowering that down payment even more. In addition, because the market is so soft several homeowners are giving buyers credits of up to 6% at closing which could cover a little of that down payment. Most houses that would sell for around $150,000 are getting around $1,650 in rent per month or more. This means it is at least $300 more per month to rent the home rather than buy it and earn equity with little money down. In addition, when most houses are rented, the landlord will require a security deposit equal to one month of rent. In contrast to a lot of cities in the United States, it definitely costs more to rent in Houston than to own. There are tons of newer homes on the market and the cost of upkeep on newer energy efficient homes is minimal. The houses also usually come with a warranty.
I guess that's just the way the market is. It doesn't make much sense to me, but that's probably why I own my own home in the Houston area.