These are the highlights:
- Historically, it’s been a tossup between renting and buying a house.
- But today’s numbers are much different. The percentage of income required to rent a median-priced house sits at 27.7 percent, compared to the 17.5 percent required to purchase. Now, the choice is easy.
- Prices vary by market. Before you sign your next lease, it’s smart to meet with a loan officer and crunch the numbers to find out if you can get more out of your monthly housing expense by buying a home instead.
Jonathan Eggleston, a U.S. Census Bureau economist, says: “The biggest determinants of household wealth [are] owning a home and having a retirement account.”* You won’t get these same benefits from renting. Take a few minutes and prequalify.
Not owning a house can cost more than you think
“Buying remains the more attractive option in the long term – that remains the American dream, and it’s true in many markets where renting has become really the shortsighted option…as people get more savings in their pockets, buying becomes the better option.”
With this in mind, there are at least five financial reasons to consider homeownership:
- Homeownership works like forced savings.
- It gives you tax breaks.
- It helps you lock in your monthly cost of housing.
- It’ll cost you less than renting.
- It’s the only investment you can live in.
Then there’s the fact that research shows that a homeowner’s net worth is 44 times more than the worth of a renter. One argument in favor of renting is that it cuts the cost of home repair and taxes, but it helps to remember that all these expenses incurred by a landlord are already lumped into your monthly rent payment — plus any profit they make.
We got the scoop on how much you could save
Today’s housing market is filled with opportunities, and renters are taking advantage. This historic affordability is giving many first-time buyers more buying power than they expected. Wondering how much house you can afford right now, and how it stacks up to your monthly rent? You can find out within minutes.
*”‘If you don’t own a home, buy one,’ Wall Street billionaire says.” HouseLoanBlog.net, Jan. 2020.
For educational purposes only. Please contact your qualified professional for specific guidance.
Sources deemed reliable but not guaranteed.