“It’s still more affordable to buy a home than rent one.“
If spending more time at home over the past year is making you really think hard about buying a home instead of renting one, you’re not alone. You may be wondering, however, if the dollars and cents add up in your favor as home prices continue to rise. According to the experts, in many cases, it’s still more affordable to buy a home than rent one. Here’s why.
ATTOM Data Solutions recently released the 2021 Rental Affordability Report, which states:
“Owning a median-priced three-bedroom home is more affordable than renting a three-bedroom property in 572, or 63 percent of the 915 U.S. counties analyzed for the report.
That has happened even though median home prices have increased more than average rents over the past year in 83 percent of those counties and have risen more than wages in almost two-thirds of the nation.”
How is this possible?
The answer: historically low mortgage interest rates. Todd Teta, Chief Product Officer with ATTOM Data Solutions, explains:
“Home-prices are rising faster than rents and wages in a majority of the country. Yet, home ownership is still more affordable, as amazingly low mortgage rates that dropped below 3 percent are helping to keep the cost of rising home prices in check.”
In 2020, mortgage rates reached all-time lows 16 times, and so far, they’re continuing to hover in low territory this year. These low rates are a big factor in driving affordability. Teta also notes:
“It’s startling to see that kind of trend. But it shows how both the cost of renting has been relatively high compared to the cost of ownership and how declining interest rates are having a notable impact on the housing market and home ownership. The coming year is totally uncertain, amid so many questions connected to the Coronavirus pandemic and the broader economy. But right now, owning a home still appears to be a financially-sound choice for those who can afford it.”
Bottom Line
If you’re considering buying a home this year, let’s connect today to discuss the options that match your budget while affordability is in your favor.
To view original article, visit Keeping Current Matters.
4 Tips To Make Your Strongest Offer on a Home
Your agent is your partner in navigating details. Trust them to lead you through negotiations and help you figure out your best plan.
Why Today’s Seller’s Market Is Good for Your Bottom Line
The market is still working in favor of sellers. If you house is ready and priced competitively, it should get a lot of attention.
What Mortgage Rate Do You Need To Move?
While mortgage rates are nearly impossible to forecast, the optimism from the experts should give you insight into what’s ahead.
Finding Your Perfect Home in a Fixer Upper
Your agent can also offer advice on which upgrades and renovations will set you up to get the greatest return on your investment.
The Benefits of Downsizing When You Retire
When you downsize your house, you often end up downsizing the bills that come with it, like energy costs, and maintenance requirements.
Why There Won’t Be a Recession That Tanks the Housing Market
The fundamentals of the economy, despite some hiccups, are doing pretty good.