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.