{"id":1339,"date":"2018-05-03T15:08:52","date_gmt":"2018-05-03T19:08:52","guid":{"rendered":"http:\/\/buyershomestore.com\/?p=1339"},"modified":"2018-05-03T17:41:03","modified_gmt":"2018-05-03T21:41:03","slug":"is-buying-a-home-in-the-us-really-cheaper-than-renting","status":"publish","type":"post","link":"https:\/\/buyershomestore.com\/is-buying-a-home-in-the-us-really-cheaper-than-renting\/","title":{"rendered":"Is Buying a Home in the US Really Cheaper Than Renting?"},"content":{"rendered":"<p>The results of the\u00a0<a title=\"2018 Rental Affordability Report\" href=\"https:\/\/www.attomdata.com\/news\/affordability\/2018-rental-affordability-report\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em>2018 Rental Affordability Report<\/em><\/a><em>\u00a0<\/em>from<em>\u00a0<\/em>ATTOM\u00a0show that buying a median-priced home is more affordable than renting a three-bedroom property in 54% of U.S. counties analyzed for the report.<\/p>\n<p>The updated numbers show that renting a three-bedroom property in the United States requires an average of 38.8% of income.<\/p>\n<p>The least affordable market for renting was Marin County, CA, just over the Golden Gate Bridge from San Francisco, where renters spend a staggering\u00a0<strong>79.5% of average wages<\/strong>\u00a0on rent, while the most affordable market was Madison County, AL where\u00a0<strong>22.3% of average wages<\/strong>\u00a0went to rent.<\/p>\n<h4><strong>Other interesting findings in the report include:<\/strong><\/h4>\n<ul>\n<li><strong>Average rent rose faster than income in 60% of counties<\/strong><\/li>\n<li>Average rent rose faster than median home prices in 41% of counties<\/li>\n<li>While median home prices rose faster than average rents in 58% of counties<\/li>\n<\/ul>\n<p>Buying a home makes sense socially and financially. If you are one of the many renters out there who would like to evaluate your ability to buy this year, let\u2019s get together to find your dream home.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"size-large wp-image-1340 aligncenter\" src=\"https:\/\/buyershomestore.com\/wp-content\/uploads\/2018\/05\/InfoGraphic-725x1024.jpg\" alt=\"Buying vs Renting Infographic\" width=\"725\" height=\"1024\" srcset=\"https:\/\/buyershomestore.com\/wp-content\/uploads\/2018\/05\/InfoGraphic-725x1024.jpg 725w, https:\/\/buyershomestore.com\/wp-content\/uploads\/2018\/05\/InfoGraphic-212x300.jpg 212w, https:\/\/buyershomestore.com\/wp-content\/uploads\/2018\/05\/InfoGraphic-768x1084.jpg 768w, https:\/\/buyershomestore.com\/wp-content\/uploads\/2018\/05\/InfoGraphic.jpg 1046w\" sizes=\"(max-width: 725px) 100vw, 725px\" \/><\/p>\n<h1 class=\"entry-title\">NOT Owning Your Home Can Cost You a Lot of Money!<\/h1>\n<p>Owning a home has great financial benefits, yet many continue to rent! Today, let\u2019s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.<\/p>\n<p><em>Realtor.com\u00a0<\/em>recently\u00a0<a title=\"reported\" href=\"https:\/\/www.realtor.com\/advice\/buy\/reasons-to-buy-a-home-in-2018\/\" target=\"_blank\" rel=\"noopener noreferrer\">reported<\/a>\u00a0that:<\/p>\n<blockquote><p><em>\u201c<strong>Buying remains the more attractive option in the long term \u2013 that remains the American dream,<\/strong>\u00a0and it\u2019s true in many markets where renting has become really the shortsighted option\u2026\u00a0<strong>as people get more savings in their pockets, buying becomes the better option.\u201d<\/strong><\/em><\/p><\/blockquote>\n<h4><strong>What proof exists that owning is financially better than renting?<\/strong><\/h4>\n<p>1. In a previous blog we highlighted the top 5\u00a0<a title=\"financial benefits\" href=\"https:\/\/www.mykcm.com\/2017\/11\/08\/5-reasons-homeownership-makes-cents\/\" target=\"_blank\" rel=\"noopener\">financial benefits<\/a>\u00a0of homeownership:<\/p>\n<ul>\n<li>Homeownership is a form of\u00a0<em>forced savings.<\/em><\/li>\n<li>Homeownership provides tax savings.<\/li>\n<li>Homeownership allows you to\u00a0<em>lock in your monthly housing cost.<\/em><\/li>\n<li>Buying a home is\u00a0<em>cheaper than renting.<\/em><\/li>\n<li>No other investment lets you\u00a0<em>live inside of it.<\/em><\/li>\n<\/ul>\n<p>2.\u00a0<a title=\"Studies\" href=\"https:\/\/www.mykcm.com\/2017\/10\/12\/net-worth-of-homeowners-44x-greater-than-renters\/\" target=\"_blank\" rel=\"noopener\">Studies<\/a>\u00a0have shown that a homeowner\u2019s net worth is 44x greater than that of a renter.<\/p>\n<p>3. Just a\u00a0few months ago, we\u00a0<a title=\"explained\" href=\"https:\/\/www.mykcm.com\/2018\/04\/17\/rising-prices-help-you-build-your-familys-wealth\/\" target=\"_blank\" rel=\"noopener\">explained<\/a>\u00a0that a family that purchased an average-priced home at the beginning of 2018 could build more than $44,000 in family wealth over the next five years.<\/p>\n<p>4. Some argue that renting eliminates the cost of taxes and\u00a0home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the\u00a0<a title=\"rent payment\" href=\"https:\/\/www.mykcm.com\/2018\/02\/05\/whether-you-rent-or-buy-either-way-youre-paying-a-mortgage-2\/\" target=\"_blank\" rel=\"noopener\">rent payment<\/a>\u2013\u00a0<em>along with a profit margin!!<\/em><\/p>\n<p><img decoding=\"async\" class=\"size-large wp-image-1341 aligncenter\" src=\"https:\/\/buyershomestore.com\/wp-content\/uploads\/2018\/05\/Rent-vs.-Buy-STM-1046x1354-791x1024.jpg\" alt=\"Renting or buying Infographic\" width=\"791\" height=\"1024\" srcset=\"https:\/\/buyershomestore.com\/wp-content\/uploads\/2018\/05\/Rent-vs.-Buy-STM-1046x1354-791x1024.jpg 791w, https:\/\/buyershomestore.com\/wp-content\/uploads\/2018\/05\/Rent-vs.-Buy-STM-1046x1354-232x300.jpg 232w, https:\/\/buyershomestore.com\/wp-content\/uploads\/2018\/05\/Rent-vs.-Buy-STM-1046x1354-768x994.jpg 768w, https:\/\/buyershomestore.com\/wp-content\/uploads\/2018\/05\/Rent-vs.-Buy-STM-1046x1354.jpg 1046w\" sizes=\"(max-width: 791px) 100vw, 791px\" \/><\/p>\n<p>Owning a home has always been, and will always be, better from a financial standpoint than renting.<\/p>\n<h1 class=\"entry-title\">Whether You Rent or Buy, Either Way You\u2019re Paying a Mortgage<\/h1>\n<p>There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize, however, that unless you are living with your parents rent-free, you are paying a mortgage \u2013\u00a0<em>either yours or your landlord\u2019s.<\/em><\/p>\n<p>As\u00a0<em>Entrepreneur Magazine,<\/em>\u00a0a premier source for small business,\u00a0<a title=\"explained\" href=\"https:\/\/www.entrepreneur.com\/article\/286196\" target=\"_blank\" rel=\"noopener noreferrer\">explained<\/a>\u00a0in their article,\u00a0<em>\u201c12 Practical Steps to Getting Rich\u201d<\/em>:<\/p>\n<blockquote><p><em>\u201cWhile renting on a temporary basis isn\u2019t terrible, you should most certainly own the roof over your head if you\u2019re serious about your finances. It won\u2019t make you rich overnight, but\u00a0by renting, you\u2019re paying someone else\u2019s mortgage. In effect, you\u2019re making someone else rich.\u201d<\/em><\/p><\/blockquote>\n<p>Christina Boyle, Senior Vice President and head of the Single-Family Sales &amp; Relationship Management organization\u00a0at\u00a0<em>Freddie Mac,<\/em>\u00a0explains another benefit of securing a mortgage as opposed to paying rent:<\/p>\n<blockquote><p><em>\u201cWith a 30-year fixed rate mortgage, you\u2019ll have the certainty &amp; stability of knowing what your mortgage payment will be for the next 30 years \u2013 unlike rents which will continue to rise over the next three decades.\u201d<\/em><\/p><\/blockquote>\n<p>As an owner, your mortgage payment is a form of\u00a0<em>\u2018forced savings\u2019\u00a0<\/em>which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building that equity.<\/p>\n<p>Interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home.\u00a0<a title=\"Freddie Mac\u2019s\" href=\"http:\/\/www.freddiemac.com\/pmms\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em>Freddie Mac\u2019s<\/em><\/a>\u00a0latest report shows that rates across the country were at 4.22% last week.<\/p>\n<header class=\"entry-header\">\n<h1 class=\"entry-title\">Buying A Home Is More Affordable Than Renting In 54% Of US Counties<\/h1>\n<\/header>\n<div class=\"entry-featured\">\n<p>\u00a0<span style=\"font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif;\">According to\u00a0<\/span><em style=\"font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif;\">ATTOM Data Solutions\u2019\u00a0<\/em><a style=\"font-family: -apple-system, BlinkMacSystemFont, &#039;Segoe UI&#039;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &#039;Helvetica Neue&#039;, sans-serif;\" title=\"2018 Rental Affordability Report\" href=\"https:\/\/www.attomdata.com\/news\/affordability\/2018-rental-affordability-report\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em>2018 Rental Affordability Report<\/em><\/a><em style=\"font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif;\">, \u201cbuying a median-priced home is more affordable than renting a three-bedroom property in 240 of 447 [or 54% of] U.S. counties analyzed for the report.\u201d<\/em>For the report,\u00a0<em>ATTOM Data Solutions\u00a0<\/em>compared recently released fair market rent data from the\u00a0<em>Department of Housing and Urban Development\u00a0<\/em>with reported income amounts from the\u00a0<em>Department of Labor and Statistics\u00a0<\/em>to determine the percentage of income that a family would have to spend on their monthly housing cost (rent or mortgage payments).<\/p>\n<p>Daren Blomquist,\u00a0<em>Senior Vice President<\/em>\u00a0of\u00a0<em>ATTOM Data Solutions\u00a0<\/em>had this to say:<\/p>\n<blockquote><p><em>\u201cAlthough buying is still more affordable than renting in the majority of U.S. housing markets, the majority is shrinking as home price appreciation continues to outpace rental growth in most areas.\u201d<\/em><\/p><\/blockquote>\n<p>However, the report also shows that the average fair market\u00a0<strong>rent rose faster than average weekly wages in 60% of the counties<\/strong>\u00a0analyzed in the report (266 of 447 counties). With rents rising, many renters should consider buying a home soon.<\/p>\n<p>Rents will continue to rise, and mortgage interest rates are still at historic lows. Before you sign or renew your next lease, let\u2019s get together to help you determine if you are able to buy a home of your own and lock in your monthly housing expense.<\/p>\n<\/div>\n<p><strong>If you&#8217;re ready to make the smart switch from renting to becoming a homeowner, we&#8217;re excited to help you get the process started. <a href=\"https:\/\/buyershomestore.com\/contact-us\/\" target=\"_blank\" rel=\"noopener\">Click here<\/a> to schedule your FREE Buyer&#8217;s Consultation and let us help you get on the path to your dream!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The results of the\u00a02018 Rental Affordability Report\u00a0from\u00a0ATTOM\u00a0show that buying a median-priced home is more affordable than renting a three-bedroom property in 54% of U.S. counties analyzed for the report. The updated numbers show that renting a three-bedroom property in the United States requires an average of 38.8% of income. The least affordable market for renting&#8230;<\/p>\n","protected":false},"author":4,"featured_media":1348,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[146],"tags":[],"_links":{"self":[{"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/posts\/1339"}],"collection":[{"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/comments?post=1339"}],"version-history":[{"count":6,"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/posts\/1339\/revisions"}],"predecessor-version":[{"id":1374,"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/posts\/1339\/revisions\/1374"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/media\/1348"}],"wp:attachment":[{"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/media?parent=1339"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/categories?post=1339"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/tags?post=1339"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}