Why Is Buying More Affordable than Renting?

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I was reading an article recently by Jonathan Smoke about how renters are feeling trapped with all the rent hikes that have been happening lately. He warns that low rental vacancies and a lack of new rental construction are pushing rents up. He says we can expect rents to outpace home price appreciation in the coming year.

Some stats says that 49% of rental households spend more than 30% of their income on housing. These households struggle to save for a rainy day and pay other bills, such as food and healthcare. The author goes on to say that housing is central to health and well-being of our country and local communities. In addition, this rental affordability crisis threatens the future of owned housing, as rent will trap more aspiring homeowners into a vicious financial cycle in which they cannot save and build a solid credit score.

In more than 75% of the counties across the country it is actually more affordable to purchase a home than to rent. It's not that potential home buyers don't qualify in terms of their credit scores or in how much they have saved for their down payment, it's that they think they're not qualified. Bottom line: don't get caught in the trap so many renters are currently in.

If you're ready and willing to buy a home, find out if you're able to! Give us a call or shoot us a call today and we'll put you in touch with a professional who can tell you whether you're ready to get a mortgage. We look forward to hearing you soon.