The Time to Buy a Home is Now
For months the research has indicated that renting an apartment or home is more expensive than purchasing a mortgage. Now, the cost of renting a home in the U.S. has risen to its least affordable levels ever, according to a study from property website Zillow. “Rents are crazy right now,” Dr. Svenja Gudell, chief economist at Zillow, said in a statement. “Unaffordable rents are making it hard for people to save for a down payment and retirement.”
According to CNBC, “Renters in the U.S. can now expect to pay around 30.2 percent of their monthly income for rent, the highest percentage ever, up from pre-housing boom levels of around 24.4 percent, according to the analysis of second-quarter data on rental and mortgage affordability, which was released Thursday. The historical comparison period covered 1985-2000.” The west coast has it even worse- some renters in Los Angeles are paying almost half of their monthly income toward rent.
Meanwhile, buyers are living large on the other side of the spectrum. CNBC reports that buyers are “likely spending around 15.1 percent of their monthly income on mortgage payments, down from around 21.3 percent in the 1985-2000 period, the study found.”
With a number of down payment assistance programs and low mortgage rate products available, it is the best time to buy a home. Go to Down Payment Resource to see which programs you’re eligible for, and start saving toward your home by opening a free BoostUp account today.