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Renting In The US Is Now Twice As Expensive As Buying - It could be time to stop renting and start buying.

Tuesday, January 13, 2015   /   by Jason Stockwell

Renting In The US Is Now Twice As Expensive As Buying - It could be time to stop renting and start buying.

Renting In The US Is Now Twice As Expensive As Buying

As rent soars across the US, Zillow found that renting a home is half as affordable as buying one.

In the third quarter of 2014, US renters could expect to spend about 30% of their incomes on rent, while those buying homes could expect to spend just 15% of their monthly incomes on their mortgage payment.

The report reveals a big shift from the years before the real estate bubble, between 1985 and 2000, when rent was typically more affordable in major metros than buying.  

Now, in most metros, those who can come up with a down payment are better off buying, in terms of affordability.

Even in the least affordable metros — like San Francisco, Los Angeles, Seattle and Boston — renting was a more affordable option before the real estate market crash. But since then, rent has increased while the cost of buying a home has fallen in many places, so that renting is now the less affordable option — sometimes by a large margin.

Younger buyers making smaller down payments spend slightly more than other buyers on mortgage payments — a median of 17% of their incomes — but buying is still more affordable for them on a monthly basis.

"Despite rising home values, home ownership remains very accessible for buyers that can scrape together a down payment — even a relatively modest one — find a home to buy and secure financing,” said Zillow Chief Economist Dr. Stan Humphries.

Humphries has said he expects 2015 to be a breakthrough year for younger buyers to enter the market, and many of those buyers will decide to buy because rent is so unaffordable. At the same time, some renters are spending so much on rent they will struggle to save for a down payment, even if they want to buy.

 

Couple With New House

It could be time to stop renting and start buying. 

Read more: http://www.zillow.com/blog/rent-half-as-affordable-as-buy-165842/#ixzz3OjEMNc7G

ReMax Results Team Stockwell
Jason Stockwell
5201 Eden Ave. Ste. 100
Edina, MN 55436
612-636-6350

The data relating to real estate for sale on this web site comes in part from the Broker ReciprocitySM Program of the Regional Multiple Listing Service of Minnesota, Inc. Real estate listings held by brokerage firms other than Lakes Area Realty are marked with the Broker ReciprocitySM logo or the Broker ReciprocitySM thumbnail logo (a little black house) and detailed information about them includes the name of the listing brokers.” Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items.” Copyright2020Regional Multiple Listing Service of Minnesota, Inc. All rights reserved. Data last updated November 24, 2020
The data relating to real estate for sale on this web site comes in part from the Broker ReciprocitySM Program of the Regional Multiple Listing Service of Minnesota, Inc. Real Estate listings held by brokerage firms other than Jason Stockwell - Team Stockwell / ReMax Results are marked with the Broker ReciprocitySM logo or the Broker ReciprocitySM thumbnail logo (a little black house) and detailed information about them includes the name of the listing brokers.” Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items.” Copyright2020Regional Multiple Listing Service of Minnesota, Inc. All rights reserved. Data last updated November 24, 2020
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