Owning Cheaper Than Renting in Many Cities

With low interest rates and falling home prices, monthy payments for owning your own home may be cheaper than renting in a growing number of cities.

A recent Wall Street Journal article noted that owning a home has become more affordable than at any point in the last 15 years, and that in a growing number of cities, is more affordable on a monthly basis than renting.

Mortgage rates, at around 4%, are the lowest they have been in decades, and home values have declined in most areas.  On the other hand, across the country, rent has increased.

As a result, monthly mortgage payments, including insurance and taxes, are lower than the average rent in 12 metropolitan areas, according to a Wall Street Journal survey.  For example, in Atlanta, the monthly payment on an average home was $539 (witha  20% down payment), while the average rent was $840.  Even in areas where renting is still cheaper, owning a home is increasingly affordable, such as in Orange County.  The building blocks for a recovery in the real estate market is in place.

However, potential home buyers may be deterred by additional fees (homeowners’ association fees, maintenance fees), inability to qualify for a loan, or trepidation about the future.

Given the current affordability of homes, are you considering buying a home instead of renting?  We offer free consultations to help you evaluate your options and answer your questions about how to make the most of this opportunity.  Contact us at MarkusandHeidi.com.

About ocrealty
We are licensed Realtors who specialize in the Orange County real estate market. We are members of the National Association of Realtors, the California Association of Realtors, the Pacific West Association of Realtors and the Orange County Association of Realtors. Our clients are number one with us, that's why we offer service that's tailored to your needs. We're committed to your satisfaction and providing expert service at every level and handling all transactions with genuine care. We pride ourselves on exceeding your expectations and making you feel like you're our only client. We are both Southern California natives and between the two of us speak Spanish, Portuguese and German fluently. We have lived, traveled and worked overseas and share a global perspective on business and life. Between the two of us we have visited over 50 countries around the world. Highlights of our travels include ballooning across the US, rock climbing in Thailand, river rafting in Switzerland, riding a motorbike across the Sahel in Africa, backpacking through Turkey and Egypt, summiting the Western Hemisphere's highest mountain, surfing the great waves of Central America, traveling down the Amazon River, trekking through the jungles of Laos, and exploring the ruins of ancient civilizations around the world. We are both passionate for outdoor adventure and use our spare time for rock climbing, mountaineering and surfing.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: