The Australian Securities and Investments Commission (ASIC) has issued a formal warning against Bitget for promoting and offering unlicensed crypto futures products with leverage as high as 125:1.

While Bitget holds limited authorisation to operate as a crypto exchange in Australia, it is not licensed to provide financial services such as derivative trading.

The regulator said the platform’s crypto futures offering breached local rules and posed significant risks to Australian investors by advertising highly leveraged products through its website and mobile app.

Bitget, one of the world’s largest cryptocurrency exchanges by customer base, has already drawn regulatory scrutiny across multiple jurisdictions.

The ASIC warning is part of a growing pattern of enforcement actions worldwide against the exchange’s derivatives services.

Bitget’s leverage offer exceeds Australia’s 2:1 limit

According to ASIC, crypto futures contracts are classified as high-risk derivative instruments.

These allow users to speculate on the future value of digital assets, but in doing so, expose them to outsized losses—especially when combined with high leverage.

While ASIC currently caps leverage on such products at 2:1, Bitget’s promotional materials reportedly showcased crypto futures with leverage up to 125:1, far exceeding legal limits.

ASIC emphasised that investors using such products can control large positions with relatively small capital inputs, multiplying the scale of both potential profits and losses.

The regulator said this practice “can result in substantial losses for investors” and warned users to be cautious of platforms promoting such instruments without proper licensing.

Exchange warns users but continues to offer the product

Following ASIC’s concerns, Bitget added disclaimers to its site and app stating that it is neither licensed nor authorised to offer crypto derivatives in Australia.

Despite this, the exchange’s futures trading services remain accessible to users through its platform.

Bitget is legally permitted to provide spot trading and custodial services in Australia, but it lacks an Australian Financial Services (AFS) licence, which is mandatory for offering derivative products.

The continued promotion of futures contracts may place the exchange at further risk of regulatory action or enforcement proceedings.

Global crackdown intensifies with eight regulators issuing warnings

Bitget’s regulatory troubles extend far beyond Australia. At least eight countries have raised concerns over the platform’s operations, particularly its futures products.

In 2023, Germany’s financial watchdog BaFin cautioned investors against engaging with Bitget, stating that the exchange was not under its supervision.

Similar warnings have since been issued by regulators in Canada, France, Cyprus, Malaysia, Spain, and Japan.

Each of these authorities has expressed concern about Bitget offering financial products without appropriate authorisation or oversight.

In some cases, regulatory actions have included website takedown requests or advisories to consumers.

Despite these setbacks, Bitget has continued to expand. Last month, the platform received regulatory approval to operate in Georgia, where it now offers digital asset exchange and custodial wallet services.

Earlier this year, Bitget surpassed 100 million registered users globally, becoming the second-largest crypto exchange by customer base.

The post Bitget faces regulatory heat in Australia over unlicensed 125x crypto futures appeared first on Invezz

Tesla Inc (NASDAQ: TSLA) has been a rocky ride lately, shedding nearly 13% over the past two months amid disappointing delivery numbers and growing concerns over its automotive business at large.

In a recent CNBC interview, Victoria Greene – the chief investment officer of G Squared Private Wealth – didn’t mince words, calling TSLA’s car business a “dumpster fire.”

Yet, she stopped short of recommending a sell, citing the company’s tech ambitions as a reason to hold.

Greene’s nuanced take on Tesla stock reflects the growing divide between its struggling auto business and its promising future in AI and robotics.

Why is Tesla stock a dumpster fire?

Victoria Greene’s frustration with TSLA’s auto division stems from a string of weak deliveries and strategic missteps.

Tesla’s decision to delay the release of its cheaper Model 3 until after the $7,500 EV tax credit expires raised eyebrows, suggesting a reactive rather than proactive sales strategy.

Meanwhile, heightened competition in Europe and Asia is squeezing the EV maker’s market share, and the tone of the recent earnings call did little to reassure investors.

According to the expert, the numbers didn’t disappoint investors as much as Elon Musk’s comment that “we could have a few rough quarters.”

The messaging and outlook were troubling – especially for those banking on near-term growth in TSLA shares, she added.

Why do TSLA shares remain attractive as a tech holding?

Despite the company’s automotive woes, Greene remains bullish on Tesla’s tech potential.

On “The Exchange”, she highlighted the automaker’s advancements in full self-driving, robotics, and artificial intelligence as key reasons to hold TSLA stock.

Victoria Greene remains constructive on Tesla shares as its tech narrative remains intact – the long-term vision of robotaxis and autonomous systems continues to attract investors.

Additionally, Musk’s track record of eventually delivering on ambitious promises adds credibility to the firm’s outlook.

If political distractions continue to fade, the G Squared’s chief investment officer said investors may shift focus from lagging car sales to Tesla’s disruptive tech pipeline, which could drive future valuation.

Should you invest in Tesla Inc today?

Greene’s verdict? Hold, don’t fold – but also don’t double down on Tesla stock at current levels.

While she acknowledges the risks tied to the company’s automotive unit, especially in international markets, she sees enough promise in the tech side to justify staying invested.

However, Victoria Greene cautions against aggressive buying, given Musk’s warning of potentially rough quarters ahead.

All in all, for investors, the key is to recognise TSLA as a hybrid play – part carmaker, part tech innovator.

Those with a long-term horizon and tolerance for volatility may find value in holding, but new entrants should tread carefully until the auto narrative stabilises.

The post Victoria Greene dubs Tesla stock a ‘dumpster fire’: find out more appeared first on Invezz

This week’s most notable news in Latin America is that the Brazilian financial system moves closer to global trends in financial digitalisation, setting the stage for a more modern, agile, and secure infrastructure.

On the other hand, Mexico’s Grupo Murano announced that it would invest up to $10 billion in a time frame of 5 years to create a Bitcoin Treasury.

Brazil’s capital markets take a key step toward digitalisation

VERT has built a revolutionary blockchain platform for private credit on the XRP Ledger (XRPL), with the goal of improving securitisation operations’ efficiency and transparency.

This revolutionary technology automates critical procedures in structured credit, from issue to settlement, with real-time tracking and full traceability.

As a result, the Brazilian financial system is becoming more aligned with global financial digitisation trends, paving the way for a more contemporary, adaptable, and secure infrastructure.

The platform’s first milestone was the issuance of a 700-million-real Agribusiness Receivables Certificate (CRA), which is equivalent to around $130 million.

VERT’s solution, which leverages XRPL’s low costs and speedy settlement capabilities, as well as the XRPL EVM Sidechain for smart contract functionality, introduces new levels of transparency, cost-efficiency, and coordination.

The platform, which is backed by Ripple, conforms with Brazilian regulations and boosts investor confidence.

With over 350 structured credit transactions and $10.51 billion in assets under management, VERT solidifies its leading position by advancing blockchain innovation in regulated capital markets.

Grupo Murano bets big on Bitcoin with $10 billion treasury strategy

Mexican real estate firm Grupo Murano has announced that it will invest as much as $10 billion into Bitcoin over five years to build a Bitcoin treasury.

The firm, known for designing hotels, resorts, and shopping malls in Mexico, has joined the ranks of companies that have adopted Bitcoin as a core strategic reserve asset, a trend that is expected to spread globally.

Grupo Murano not only diversifies its portfolio by exposing up to 80% of its assets to Bitcoin, but it also embraces digital transformation across its whole order book.

The company is placing Bitcoin ATMs in its venues.

This bold move catapults Murano into the ranks of leading global companies such as Méliuz, Vanadi Coffee, and Trump Media that also have Bitcoin in their treasuries.

Ripio and Tapi’s partnership brings crypto payments to Argentina

Argentine crypto exchange Ripio has teamed up with payment FinTech Tapi to allow users to pay for more than 5,000 services directly through the Ripio app, including utilities, phone bills, internet, school fees and subscription services.

With this integration, users can now process these payments with cryptocurrencies, without the need to convert to Argentine pesos, representing a difference between crypto as an asset for investments to crypto as a medium of exchange.

Ripio operates in several Latin American countries, including Brazil, Mexico, and Colombia, and provides access to major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and stablecoins such as USDT and USDC.

Supported by cross-chain QR codes and seamless conversion in real time, this new feature simplifies payments in compliance with local laws while reinforcing user trust.

The post LATAM crypto news: VERT drives asset tokenization in Brazil as Grupo Murano bets $10B on BTC treasury appeared first on Invezz

Vietnam has officially launched NDAChain, a national blockchain platform designed to enhance digital security across government and private services.

Operated by the Ministry of Public Security’s Data Innovation and Exploitation Centre, the initiative marks a major shift in Vietnam’s digital strategy.

Developed by the country’s National Data Association, NDAChain aims to act as a protective layer for critical national data systems, laying the groundwork for an integrated, blockchain-based digital ecosystem.

The government plans full implementation by the end of 2025, signalling an aggressive move to overhaul data infrastructure with scalable, secure solutions.

NDAChain adopts hybrid model to address cybersecurity and scalability

NDAChain uses a hybrid blockchain architecture that combines centralised and decentralised components to overcome limitations of conventional systems.

By introducing a decentralised trust layer, the government seeks to strengthen national cybersecurity and increase interoperability between platforms.

The infrastructure is powered by a permissioned Layer 1 blockchain that includes 49 validating nodes run by both state institutions and large private enterprises. These include well-known Vietnamese firms such as Zalo, Masan, and SunGroup.

The platform operates on a Proof of Authority (PoA) consensus model, reinforced by zero-knowledge proofs (ZKPs) to ensure transactional privacy and data integrity.

This setup helps scale the system while maintaining control and trustworthiness, making it suitable for critical sectors such as finance, healthcare, education, and logistics.

NDA DID and NDAKey support digital identity and anti-fraud efforts

To support secure identity verification, NDAChain integrates with NDA DID, a decentralised identity solution. This allows both public and private entities to confirm counterparties in sensitive transactions, reinforcing trust in digital operations.

NDAKey, another component of the platform, is designed to detect scams and impersonation, addressing widespread concerns over fraud in Vietnam’s fast-growing digital economy.

The blockchain network has demonstrated the ability to process up to 3,600 transactions per second, enabling it to support national-scale data operations.

By combining performance with regulatory oversight, NDAChain aims to serve as the backbone for e-government services and private-sector applications alike.

Government eyes full rollout and global partnerships by end-2025

The Vietnamese government has laid out a phased rollout for NDAChain. In the first phase, the platform will be integrated into key national systems, including the National Data Centre, local governments, and major universities. This is scheduled to be completed by the end of 2025.

A second phase, currently under planning, will focus on international collaboration and the development of Layer 2 applications tailored to specific industries.

These may include sector-specific blockchain services for logistics tracking, educational credential verification, or public health management.

Vietnam’s adoption of blockchain infrastructure signals a broader push towards digitisation and long-term economic modernisation. With NDAChain, the country is aligning its data systems with global standards while retaining sovereign control over critical digital assets.

The post Vietnam launches NDAChain to secure digital data infrastructure by 2025 appeared first on Invezz

After months of intensive, often grueling, negotiations and shuttle diplomacy, the fate of a critical trade agreement between the European Union and the United States now rests squarely in the hands of one man: President Donald Trump.

The high-stakes endgame is set to unfold in Scotland, where European Commission President Ursula von der Leyen will meet with the US president on Sunday in a last-ditch effort to seal a deal.

A race against the clock to avert a tariff storm

The two sides are in a desperate race against the clock. If no agreement is reached, a punishing 30% tariff on the bloc’s exports to the US is scheduled to automatically kick in on Friday.

“Intensive negotiations at technical and political have been ongoing,” said Paula Pinho, von der Leyen’s spokesperson.

Leaders will now take stock and consider the scope for a balanced outcome that provides stability and predictability for businesses and consumers on both sides of the Atlantic.

EU officials have repeatedly cautioned that, despite the detailed work of their negotiators, a final deal ultimately hinges on President Trump’s personal approval, making the outcome notoriously difficult to predict.

The US president’s recent negotiations with Japan serve as a cautionary tale; he appeared to change certain final terms on the fly just before a deal was eventually agreed upon earlier this week.

The anatomy of a potential deal: 15% tariffs and key exemptions

Over the past week, the EU and the US. have been zeroing in on the framework of a potential agreement.

According to a previous Bloomberg report, this would likely see the EU face a baseline 15% tariff on most of its trade with the US.

However, the EU is pushing hard for limited but crucial exemptions for key sectors, including aviation, some medical devices and generic medicines, several types of spirits, and a specific set of manufacturing equipment that the US needs.

Under the arrangements being discussed, steel and aluminum imports would likely benefit from a quota system, but any imports above that threshold would face a much higher tariff of 50%.

This is on top of the universal levy President Trump has threatened, as well as the existing 25% levy on cars and auto parts and the 50% duty on steel and aluminum.

He has also threatened to target pharmaceuticals and semiconductors with new duties as early as next month and recently announced a 50% tariff on copper.

The EU is expecting the same 15% ceiling to apply to some of these sectors that could be targeted in the future, including pharmaceuticals, but this remains a key sticking point where President Trump’s final decision will be crucial, according to people familiar with the matter.

‘A 50-50 chance’: Trump’s take on the high-stakes game

President Trump himself has maintained an air of suspense about the negotiations.

“We’ll see if we make a deal,” he said as he arrived in Scotland on Friday. “Ursula will be here, highly respected woman.

So we look forward to that.” He reiterated his belief that there’s “a 50-50 chance” of a deal with the EU, stating there were still sticking points on “maybe 20 different things” that he did not want to detail publicly.

However, he also acknowledged the significance of a potential agreement, stating, “That would be actually the biggest deal of them all if we make it.” Before leaving Washington, he had given similar odds but also suggested the EU had a “pretty good chance” of reaching an agreement.

If a deal is struck, it is likely to take the form of a short joint statement, which would then need to be approved by the EU’s member states.

This statement would be seen as a crucial stepping stone toward more detailed and comprehensive talks in the future.

Any agreement would also likely cover non-tariff barriers, cooperation on economic security matters, and strategic purchases by the EU in sectors such as energy and artificial intelligence chips.

Europe’s Plan B: a powerful retaliation arsenal

Because of the ongoing uncertainty and the unpredictability of the negotiations, the EU has, in parallel, been sketching out a powerful set of countermeasures in the event of a no-deal scenario.

If talks collapse and President Trump carries through with his threat to impose the 30% tariff rate on most of the bloc’s exports after August 1, the EU is prepared to quickly retaliate. It would hit American exports with up to 30% tariffs on some €100 billion ($117 billion) worth of goods.

This list is strategically designed to hit politically sensitive US states and includes iconic products such as Boeing Co. aircraft, U.S.-made cars, and bourbon whiskey. The package also includes some export restrictions on scrap metals.

Beyond immediate tariffs, in a no-deal scenario, the bloc is also prepared to activate its anti-coercion instrument.

This is a potent trade tool that would eventually allow the EU to target other areas, such as US access to European markets, services, and restrictions on public contracts, provided a majority of member states back its use.

While President Trump did not explicitly link the trade negotiations to other matters on Friday, he did suggest that he planned to raise his concerns over migration flows in Europe.

“You got to stop this horrible invasion that’s happening to Europe, many countries in Europe,” Trump said, adding that he believed “this immigration is killing Europe.”

This adds another unpredictable element to what are already incredibly high-stakes discussions.

The post Trump gives ’50-50 chance’ for EU trade deal as leaders prepare for Sunday meeting appeared first on Invezz

Japan’s chief trade negotiator, Ryosei Akazawa, stated on Saturday that the $550 billion investment package recently announced in Japan under a tariff deal with the United States could be utilised to help finance semiconductor plants in the US built by Taiwanese companies.

The statement could thus be taken as indicating that Japan is striving toward a goal, willing to spend aggressively to maintain its place in the global chip supply chain, even if it involves subsidizing out-of-country (in this case, non-Japan) enterprises.

This week’s agreement on the package is part of a larger deal under which Japan is granted reduced tariffs on its exports to the US.

In exchange, Japan will pour $550 billion in investments in the direction of the US, but the specific details of the initiative are still mostly undefined.

“Japan, the United States, and like-minded countries are working together to build supply chains in sectors critical to economic security,” Akazawa told NHK.

Taiwan chipmakers eligible for support

Akazawa highlighted that the financing will not be limited to projects by US or Japanese companies.

He cited an example of a Taiwanese chipmaker operating in the United States that uses Japanese components or tailors its production to meet Japanese market demands. “That’s fine, too,” he responded, without naming a specific company.

The comment appears to be about Taiwan Semiconductor Manufacturing Co. (TSMC), a leading participant in advanced chip manufacturing.

The United States relies heavily on TSMC, which raises concerns about supply chain stability given Taiwan’s proximity to China.

TSMC has already announced a significant expansion in the United States, including a $100 billion promise made at the White House in March to bolster the $65 billion previously pledged for three new factories in Arizona.

One of these facilities is currently active.

New legal framework enables foreign financing

The investments will be channelled by two state-backed institutions, namely the Japan Bank for International Cooperation (JBIC) as well as Nippon Export and Investment Insurance (NEXI). A revision to domestic law recently enabled JBIC to fund foreign firms considered vital to Japan’s supply chains.

Akazawa said that just 1 to 2 per cent of the package will go towards equity investment. Most of the $550 billion will be allocated in the form of loans and guarantees.

Profit share is viewed as secondary to tariff relief

When queried about a White House statement claiming that the US would keep 90% of the earnings from the investment package, Akazawa explained that this only refers to returns from the limited equity part.

While Japan initially tried to collect 50% of the returns, Akazawa argued that the sacrifice was a minor price to pay for the larger economic benefits.

He pointed out that the agreement will save Japan around 10 trillion yen (approximately $67.72 billion) in tariff charges, which will more than balance the loss of investment return share.

He stated that Japan intends to implement the entire $550 billion investment package during the current term of US President Donald Trump.

At 147.66 yen to the dollar, the funding’s size and speed highlight Japan’s strategic focus on long-term supply chain resilience—particularly in the semiconductor industry, where geopolitical tensions continue to reshape global priorities.

The post Japan’s $550B investment could back Taiwan chip plants in US, says trade official appeared first on Invezz

Elon Musk’s off-the-cuff confirmation that Tesla’s long-promised lower-priced electric vehicle will closely resemble a stripped-down Model Y has done little to rekindle excitement around the brand.

The remark came during Tesla’s post-earnings call earlier this week, contradicting another executive’s attempt to avoid revealing design specifics.

While speculation about a cheaper Model Y has been around for months, Musk’s casual comment—“let the cat out of the bag”—marks the first strong indication of what the new vehicle might look like.

Yet analysts remain skeptical that such a move can meaningfully reverse Tesla’s sliding sales and waning consumer interest.

“It’s been over five years now since Tesla made its first Model Y delivery, and the only new model the company has brought to market in that time has been the Cybertruck,” said Garrett Nelson, equity analyst at CFRA in a MarketWatch report.

“Tesla needs actual new vehicle models, not just updates to existing ones to get people excited about the brand again,” he said.

Tesla’s second-quarter deliveries fell to 384,122 vehicles, down from 444,000 in the same period last year.

Even the refreshed Model Y, which launched earlier this year, failed to halt the decline.

Robotaxis, not new models, dominate Tesla’s vision

Despite the long-awaited promise of affordable Teslas, the company’s leadership barely touched on its vehicle lineup during the earnings call.

The spotlight was instead on the company’s self-driving ambitions and artificial intelligence initiatives.

Musk predicted that Tesla’s robotaxi service will be available to “roughly half the U.S. population” by the end of the year.

The company is also pinning high hopes on Optimus, its humanoid robot in development.

Stephen Gengaro of Stifel noted that Wall Street’s primary focus has shifted from vehicle sales to Tesla’s autonomous vehicle technology.

The “overwhelming key to the Tesla story over the next year is the success of its Unsupervised FSD technology and robotaxi traction,” Stephen Gengaro at Stifel said in a note Friday.

He added that a successful expansion of robotaxi operations in Austin, Texas, and a few other US cities could be a major catalyst for the stock.

Falling demand, political distractions weigh on brand

Even if a cheaper Model Y reaches volume production later this year, industry analysts warn that broader market dynamics are not in Tesla’s favour.

US consumers have shown growing interest in hybrids, while EV growth has stagnated in the face of higher prices and reduced government support.

To make matters worse, Tesla’s brand image has suffered from Musk’s increasingly political posture.

After previously aligning with conservative positions, the CEO is now feuding publicly with Donald Trump and threatening to launch a third political party in the US, potentially alienating both sides of the political divide.

Some view lower-priced cars as entry points into a brand, but with consumers facing mounting pressure from rising prices and interest rates, brand loyalty has weakened considerably.

Tesla’s lower-priced vehicle will also be heavily reliant on sales of the Full Self Driving (Supervised) package, which starts at $8,000 or a $99 monthly subscription.

But many potential buyers may be reluctant to pay the additional cost.

Wall Street trims expectations as tax credits end

The clock is ticking for EV makers, with federal tax credits for electric vehicles expected to lapse in September.

Several investment banks have recently revised their Tesla sales forecasts downward in response.

Morgan Stanley, for instance, adjusted its 2026 sales estimate to 1.85 million units, down from 1.89 million.

FactSet consensus now expects just 1.65 million Tesla deliveries in 2025, compared to 1.79 million in 2024 and 1.81 million in 2023.

Analysts say the limited boost expected from a cheaper Model Y is unlikely to offset the drag from expiring incentives and growing competition.

General Motors, for example, has announced plans to raise prices in North America by up to 1%, further pressuring the average car price, which now hovers around $48,000—nearly $10,000 higher than in 2020.

Expansion of robotaxi in other markets likely catalyst for TSLA stock

Tesla shares have lost about 21% of their value this year, including an 8% drop following the recent earnings report.

This contrasts sharply with the S&P 500 index, which is up about 9% in 2025.

The “overwhelming key to the Tesla story over the next year is the success of its Unsupervised FSD technology and robotaxi traction,” Gengaro said.

A successful expansion of robotaxis in Austin, Texas, plus a potential rollout in a few other markets “is likely a catalyst for the shares,” he added.

While the notion of a more affordable Tesla may still hold consumer appeal, it appears that for investors, the future lies elsewhere—likely behind the wheel of a self-driving robotaxi rather than a cheaper Model Y.

The post Musk hints at budget Model Y, but analysts doubt its impact on Tesla’s sales downturn appeared first on Invezz

It may seem like a distant memory, but just 17 years ago, in 2008, the median rent for Americans was a modest $824 per month. Today, that figure has soared to over $1,300, and in major metropolitan hubs like New York City and Los Angeles, it dwarfs even that national average.

This relentless climb, which saw rents jump by nearly 6% between 2022 and 2025 alone, means that Americans are now dedicating a much larger portion of their hard-earned income just to keep a roof over their heads.

The long-standing financial recommendation is to spend no more than a third of one’s income on housing. However, with rent prices consistently rising faster than wage growth across the United States, a significant number of Americans are now shelling out far more than that.

A recent analysis by Self Financial, which synthesized housing data from the US Census, Apartment List, the Bureau of Labor Statistics, and the Federal Reserve, paints a stark picture of this burden, translating it into a more tangible metric: hours of work.

On average, Americans now need to work 38.3 hours just to cover their monthly rent. In practical terms, that means the entirety of an average work week is consumed by this single, essential expense.

This national average, however, masks a wide disparity across the country.

The state-by-state divide: from 27 hours to over 60

The number of work hours required to pay for rent varies dramatically depending on where you live.

Residents of Vermont face the steepest challenge, needing to work 60.2 hours per month to meet their average monthly rental costs, the highest of any state, according to the Self Financial analysis.

At the other end of the spectrum, those living in South Dakota need just 27.6 hours to cover their rent, placing them at the lowest spot in the nation.

Unsurprisingly, the situation is most acute in major cities; residents of New York City, for instance, need to work a staggering 90.2 hours each month to pay their rent—more than two full work weeks.

Here are the five US states where the most hours of work are required to cover the average monthly rent:

• Vermont: 60.2 hours
• Hawaii: 59.9 hours
• California: 52.4 hours
• New Jersey: 50.4 hours
• Maryland: 50.3 hours

And here are the five US states where the fewest hours are required:

• Maine: 32.3 hours
• North Dakota: 32.2 hours
• Alabama: 31.4 hours
• Arkansas: 31.1 hours
• South Dakota: 27.6 hours

A glimmer of hope? Apartment boom offers some relief

While this may paint a grim outlook for rental housing in the US, there is a small glimmer of hope on the horizon.

As of May, the median US asking rent had actually dropped by about 1% year-over-year, according to real estate brokerage Redfin.

The reason for this slight reprieve, Redfin economists say, is a boom in apartment construction, which is currently hovering near a 50-year high.

“Even though renter demand is strong, it’s not keeping pace with supply,” explained Sheharyar Bokhari, a Redfin senior economist.

Many units are sitting vacant for months, which means renters have power to negotiate concessions and landlords have less leeway to keep rents high.

Renting vs. buying: the cheaper of two expensive options

Despite the high cost of renting, it remains a significantly cheaper option than buying a home in the current US market.

A combination of sky-high mortgage rates, which are nearing 7%, and home prices that are a staggering 55% higher than they were at the beginning of 2020 (according to the Case-Shiller US National Home Price Index), has put homeownership out of reach for many.

The situation in Austin, Texas, provides a clear example. “Many people in Austin are finding that it’s a lot cheaper to rent than buy,” Austin real-estate agent Andrew Vallejo recently told Fortune.

You could buy a home and have a monthly mortgage payment of $3,200, but the same home will rent for $1,900. Unless the buyer has a good amount of money for a down payment, renting is way less expensive.

This stark reality underscores the ongoing financial pressures facing American households as they navigate the challenging housing market.

The post From $824 to over $1,300: how soaring rents are consuming American paychecks appeared first on Invezz