Buying a Home Is Cheaper Than Renting in the Majority of the US
Recently I was at a home with one of our clients and another family came thru with an agent. This family was looking around.....and so this family's Husband and I began talking and he explained that he had been renting a home and landlord kept raising
the rent. Raising, raising, raising....the monthly rent for the last two years...not like they got a better rental when the landlord raised it...... then finally the landlord told them he was gonna sell the home as the market has raised up home
values. This is a real situation, and with kids and schools, and work......I really felt for this Husband's position as its an added stress to their family. Truth is always told here......the hard fact is everyone, is that investors just don't
care about you nor I, they are about investing....and when an investment can make more money....9 out of 10 times, the investor will take the money. Have you ever worked with an investor personality? Its a trait that I have figured out....it comes
with very little emotion to the deal or the person they are dealing with....that is way different than dealing with a friend, a loved one, or a home seller transaction. Not saying it's a bad trait...but you don't come up to a Pit Bull dog without
some history of that breed in your mind.
As the conversation continued, I asked the Husband, have you been to a bank to see what your qualified for...and his response was NO.....so here he was, out looking at homes (with high emotions for sure) with an agent who obviously was not directing
them the right way....this is putting the cart before the horse per say. At AGENT509, we have a game plan for all our Buyers...it works, it's a plan, and it's lead by Skip Hughes, who has over 25 years doing it...and it's a free service to a home
To buy a home today, unless you have cash, you will likely need a mortgage loan. So I recommended he go talk to a local lender that AGENT509 has had some great success with....that is the first step...to get the financial game plan figured
out. Anyway, I really felt for this Husband's position and wish him all the best in making the right steps going forward.
From our Affiliate Partner KCM - a recent post on the the results of the 2018 Rental Affordability Report from ATTOM show that buying a median-priced home is more affordable than renting a three-bedroom property in 54% of U.S. counties analyzed
for the report.
The least affordable market for renting was Marin County, CA, just over the Golden Gate Bridge from San Francisco, where renters spend a staggering 79.5% of average wages on rent.
The results of the 2018 Rental Affordability Report from ATTOM show that buying a median-priced home is more affordable than renting a three-bedroom property in 54% of U.S. counties analyzed for the report. The updated numbers show that renting a three-bedroom property in the United States requires an average of 38.8% of income.
The least affordable market for renting was Marin County, CA, just over the Golden Gate Bridge from San Francisco, where renters spend a staggering 79.5% of average wages on rent, while the most affordable market was Madison County, AL where 22.3% of average wages went to rent.
Other interesting findings in the report include:
- Average rent rose faster than income in 60% of counties
- Average rent rose faster than median home prices in 41% of counties
- While median home prices rose faster than average rents in 58% of counties
Bottom LineBuying a home makes sense socially and financially. If you are one of the many renters out there who would like to evaluate your ability to buy this year, let’s get together to find your dream home.