Earlier this month, ATTOM Data Solutions, the USA’s largest fused property database, released its 2017 Rental Affordability Report. Its finding clearly denote that buying a home is more affordable than renting in 354 of the 540 U.S. counties they analyzed.
The report states the following: “making monthly house payments on a median-priced home — including mortgage, property taxes and insurance — is more affordable than the fair market rent on a three-bedroom property in 354 of the 540 counties analyzed in the report (66 percent).”
To obtain its findings, ATTOM Data Solutions compared recently released fair market rent data from the Department of Housing and Urban Development and reported income amounts from the US Department of Labor and Statistics, in order to determine the percentage of income that a family would have to spend on their monthly housing cost (mortgage payments or rent).
With ATTOM Data Solutions’ 2016 report having shown that buying a home was more affordable in 58% of the US counties analyzed, we can see an 8% positive increase in home ownership affordability(vs. renting) for 2017. This is indeed good news for those who have been a little unsure as to whether or not “now is a good time to buy”.
It is certainly no mystery that rents have been rising faster than home prices in approximately 37% of the markets measured. However, Daren Blomquist, Senior Vice President of ATTOM Data Solutions notes that increasing interest rates could be the tipping point of affordability:
“While buying continues to be more affordable than renting in the majority of U.S. markets, that equation could change quickly if mortgage rates continue to rise in 2017. In that scenario, renters who have not yet made the leap to homeownership will find it even more difficult to make that leap this year.”
The Takeaway
Rents seem to continue to rise, but for the moment mortgage interest rates are still at historic lows, thereby making homeownership more affordable than renting!!
Before you consider signing and/or renewing your current lease, call or text me at 727.755.3434, so that together we can determine if you are able to buy a home of your own and lock in your monthly housing expense.
