Dennis Realty January 23, 2021

IS BUYING A HOME MORE AFFORDABLE THAN RENTING?

Are you spending more time at home? Is your home doing double duty as an office?  If so, you’re not alone.  If you’re renting, you may be wondering whether or not buying a home is a better option even with home prices on the rise.  So, is it?  Well, the data experts at ATTOM DATA SOLUTIONS say that owning a home is still more affordable than renting.

In their recently published 2021 Rental Affordability Report they state that the research shows that

Owning a median-priced three-bedroom home is more affordable than renting a three-bedroom property in 63% of the 915 counties analyzed

The report goes on to state that

“in 83% of the included counties, median home prices have increased more than average rents in the past 12 months and have risen more than wages in about ⅔ of the nation.

So what’s the driving force behind this paradox?  HISTORICALLY LOW MORTGAGE RATES!  

That’s right! Todd Teta, the Chief Product Officer at ATTOM Data Solutions explains that mortgage rates below 3% are balancing the cost of rising home prices.  As we transition from 2020 into 2021, it appears that mortgage rates are staying low which will in turn continue to make homes affordable.  ATTOM’s Teta remarks that

“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.”

If you’re still wondering if buying a home is right for you, please contact us!  We can help you not only find a home but we can put you in contact with trusted advisors who can help you decide what’s right for you. Come experience The Dennis Difference and see what sets us apart from the rest!