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As of February, it’s cheaper to rent a home than buy one in all of the US’s top 50 metros — and by a staggeringly wide margin, according to a recent study.

For a so-called “starter home” in any of these sought-after cities — which some have argued no longer exist thanks to sky-high borrowing rates and inflationary housing prices — it costs 60.1% less to lease the property than own it on a monthly basis, per Realtor.com’s February 2024 Rental Report.

On average, the stiff premium for homeownership amounts to roughly $1,027 in monthly costs — though in the most sought-after cities, that figure more than doubles.

In Austin, Texas, for example, the gap between renting and buying was the largest, according to Realtor.com’s report that was earlier reported on by the Daily Mail.

The monthly cost of buying a starter home — a zero-to-two-bedroom home, per Realtor.com — in the Austin area was $3,695 in February. The sum marked a staggering 141.5%– or $2,165 — more than the typical monthly rent of $1,530 in the Texan capitol.

Seattle’s housing market also boasted a large disparity between buying and renting: The monthly cost of buying a starter home was $4,422 in February, while the median rent was $2,000 — a 121.1% difference, per Realtor.com.

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And in Phoenix, Ariz., the cost of renting monthly, an average of $1,543, was nearly half the $3,071 per month it would require to buy.

Though it’s more expensive to buy a home in all of the 50 major metros in the US, San Francisco, Los Angeles, San Jose and Sacramento in California, as well as Nashville, Portland and Houston rounded out the top 10 cities with the biggest difference between buying and renting.

For reference, in Realtor.com’s February 2023 Rental Report, it found that renting a starter home was more affordable than buying in 45 of the largest US cities.

In the 12 months since, Memphis, Tenn.; Birmingham, Ala.; Pittsburgh, Pen.;, St. Louis, Mo.; and Baltimore, Md., have flipped from favoring homeowners to favoring renters, according to the Daily Mail.

Realtor.com — which assumed an 8% downpayment, a mortgage rate of 6.78% and included the cost of taxes, insurance and fees in its calculations — noted that buying a starter home is becoming increasingly more expensive as the price of monthly rents have dropped at a faster rate than buying costs.

In February, buying costs dropped 1.6% in the previous 12 months, while rent costs dropped 4.44%.

The key driver of this was elevated mortgage rates, Realtor.com said.

In February, the average rate on a 30-year fixed-rate mortgage was 6.78%, according to the real-estate listings website — up from 6.26% 12 months prior.

Surging rates have made it so unaffordable to take on a mortgage that there’s a growing number of buyers these days that Redfin calls “nepo” buyers — a reference to the nepo baby phenomenon where children of celebrities ride their coattails to gain a foothold on a career.

According to a recent survey from Redfin, 36% of Gen Zers, whose ages range between 12 and 27, and millennials, 28 to 43, are expecting a cash gift from family members in order to fund their downpayment twice as many as there were just five years ago.

Another 16% are anticipating to use an inheritance to help fund their downpayment, and 13% plan to live with their parents or other family members.

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Sports

Johnston nets 2 as Stars move within 1 win of WCF

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Johnston nets 2 as Stars move within 1 win of WCF

DENVER — Wyatt Johnston scored twice on the eve of his birthday as the Dallas Stars pushed Colorado to the brink of elimination Monday night with a 5-1 victory.

Johnston had shorthanded and power-play goals for the Stars, who grabbed a 3-1 lead in the second-round, best-of-seven series. Dallas can close it out at home in Game 5 on Wednesday.

Miro Heiskanen and Evgenii Dadonov also scored, while Sam Steel added a late empty-net goal. Jake Oettinger made 24 saves.

About an hour before the game, the National Hockey League and National Hockey League Players’ Association announced that Nichushkin was suspended for at least six months without pay. He was placed in stage 3 of the league’s player assistance program. It’s the second time this season Nichushkin has been in the program.

A Colorado lineup missing Nichushkin, the team’s leading goal scorer (nine) in this playoff run, struggled early to get on track and was outshot by a 16-2 margin in the first period. Casey Mittelstadt scored Colorado’s lone goal.

“We talked about (how) we’d been the best road team all year because regardless of the building or the lineup for the other team, who’s in, who’s out, we approach the game the same way,” Dallas coach Peter DeBoer said, “and took care of business.”

Colorado’s defense was unable to prevent Johnston and the Stars from building a 3-0 lead in the second period, and because of the hot start in the first, Dallas maintained its streak of not trailing in regulation at any point during the series. And the Stars have outscored the Avalanche 6-0 in the opening period alone.

Johnston, who turns 21 on Tuesday, scored his 10th and 11th career playoff goals. He became the eighth player in NHL history to reach double-digit postseason goals at age 20 or younger, according to league research.

Johnston took advantage of a Cale Makar turnover late in the first period and scored a shorthanded goal to give the Stars a 1-0 lead. It’s the second shorthanded goal of the series for Dallas.

“That was our worst game of the series,” Colorado coach Jared Bednar said after the loss, adding that it “atrocious.”

It wasn’t all good news for the road team, though. The Stars saw forward Roope Hintz leave the game after suffering an upper-body injury in the opening period. In his postgame news conference, DeBoer said he’d have more injury information on Hintz on Tuesday.

The Associated Press contributed to this report.

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Sports

Rangers drop 2 in row, to ‘see what we’re made of’

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Rangers drop 2 in row, to 'see what we're made of'

NEW YORK — New York Rangers captain Jacob Trouba said their failure to close out the Carolina Hurricanes at home in Game 5 presents an important character test for his team.

“I don’t think we thought this was going to be a cakewalk,” Trouba said after the Rangers’ 4-1 loss on Monday night, which narrowed New York’s series lead to 3-2. “We’ve lost two games [in a row]. We’re facing a little adversity. We’ll see what we’re made of going down to Carolina for Game 6.”

The Rangers entered the third period with a 1-0 lead thanks to Trouba’s short-handed goal in the second frame. But the desperate Hurricanes took over the game by scoring three goals in 6:23.

Jordan Staal evened the score with his first goal of the playoffs. Just 3:06 later, Evgeny Kuznetsov netted his fourth of the postseason to give Carolina the lead. Jordan Martinook added a critical third goal before Martin Necas sealed the win with an empty-netter.

“It kind of snowballed quick on us. This was a bad period,” Trouba said. “It’s different than a regular season, where you feel bad all night and tomorrow you wake up and you’re upset. You got to turn the page quick.”

His teammate, Vincent Trocheck, didn’t see the third period the same way.

“I don’t know if I’m going to say something snowballed tonight,” he said. “They scored a couple goals in the third. It’s a seven-game series against a team that was three points behind us in the regular season. We knew it wasn’t going to be easy.”

Coach Peter Laviolette also didn’t believe the third period was the reason New York dropped Game 5.

“It was more than the third period. We weren’t sharp. We gave up way too many chances in the first period and then it died off after that,” he said.

The Rangers’ power play, which scored 10 goals in five games during a recent stretch against Washington and Carolina, went scoreless for a third straight game, the unit’s longest dry spell since March.

Meanwhile, Carolina scored three goals at even strength against New York goaltender Igor Shesterkin, marking the first time Shesterkin allowed three goals in the third period of a playoff game.

Hurricanes captain Staal said the team is starting to feel like itself again.

“Yeah, obviously wins help. But we really believe we had some good games [to start the series], but we had some mistakes, especially with the special teams, and that’s gotten a lot better,” he said. “I think our 5-on-5 game has been really good and it’s coming together more and more.

“Wins are nice. We’ve got to just keep fighting.”

Staal has played in 146 playoff games during his NHL career and has seen how hard it is to finish an opponent.

“Game 5s are tough, especially when you’re at home. You don’t want to go back on the road and you want to close it out,” he said. “But we gave it all we got, we found a way to get a win and we’re going to have to do it all over again.”

Trouba took an optimistic approach to the Game 5 loss: Since the Rangers won the first three games of the series, there was some margin for error.

“Obviously we want to close out series, but we put ourselves in a position that we get a couple cracks at it,” he said. “We played good games in Carolina. We know we can play in that building, and we’ll go down there and bring a better game.”

Game 6 is Thursday night in Raleigh.

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Technology

China drives EV boom this year amid strong demand for hybrid vehicles

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China drives EV boom this year amid strong demand for hybrid vehicles

New energy vehicles for export at Lianyungang Port, Jiangsu Province, China, on April 25, 2024. 

Nurphoto | Nurphoto | Getty Images

Electric vehicle sales have risen sharply this year, led by growth in China and a strong demand for hybrid vehicles in particular, according to a report from Counterpoint Research. 

The report, released Monday, showed that sales of EV units globally, including fully battery-powered vehicles (BEVs) and hybrids, were up 18% in the first three months of 2024 compared with the same period last year. 

Sales of hybrid vehicles, which have both electric motors and combustion engines, vastly outpaced those of full battery-powered alternatives, rising 46% year over year. BEV sales rose 7%.

“The cheaper upfront cost of [hybrids] when compared to [battery EVs] and the availability of a fuel tank that eliminates range anxiety were among the main reasons for high [hybrid] demand,” Counterpoint research analyst Abhik Mukherjee said in the report. 

The data follows recent reports that suggest hybrid adoption is now outpacing that of fully electric vehicles amid concerns about weak resale values of the former and the possibility of current BEV technology becoming obsolete soon.

Hybrid vehicles are the hottest thing in the market right now, says Group 1 Automotive CEO

“Buying mid-priced [hybrids] is a more logical choice for consumers since their prices are comparable to or lower than most of [battery electric vehicles],” the report said.

China extends lead 

Chinese companies have been a huge beneficiary of the rise in demand for electric vehicles, especially firms that sell both BEVs as well as hybrids. 

According to Counterpoint, EV sales in China jumped 28% in the first quarter of 2023, amid an ongoing price war that has pushed down costs for consumers. 

The country’s largest EV maker, BYD, saw sales of hybrid vehicles increase by 7% in the first three months of this year, accounting for nearly one-third of the global hybrid market, followed by Geely Holdings and Li Auto. 

Sales of EVs in the United States were second highest globally, followed by Europe. But, while overall EV sales in the U.S. rose 2%, those of battery electric vehicles declined by 3% in the quarter.

Tesla, the leading U.S. EV maker, which only produces BEVs, saw a 9% year-on-year decline in sales in the first quarter. It was still in the top position globally in BEV sales in Q1 2024, commanding a 19% market share. BYD and Volkswagen had a 15% and 6% share, respectively.

Among the top three BEV makers only BYD recorded growth, with sales jumping 13%, while Tesla and Volkswagen’s sales declined 9% and 4% respectively, the report said. 

Competition between European and Chinese electric vehicle makers will intensify, analyst says

BYD’s strong performance comes as the company aggressively expands globally. According to the report, the company exported almost 100,000 EVs last quarter,  a 152% year-on-year growth, driven primarily by shipments to Southeast Asia.

Liz Lee, associate director at Counterpoint, said BYD’s remarkable exports highlight the growing global demand for EVs, including hybrids, with the market “poised for significant growth.”  

“[Y]et signs of a slowdown also loom and the annual growth may dip below 20%,” she added, noting that companies such as Tesla face declining interest in BEVs. 

Gallup poll in April found that less than half of U.S. adults — 44% — said they were seriously considering or might consider buying an EV, down from 55% in 2023. Meanwhile, the proportion of those not looking to buy an EV rose to 48% from 41%.

Other headwinds to the market could include an increase in protectionist measures in 2024, with both the EU and the U.S. reportedly set to enforce new tariffs on EV imports from China. 

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