People are delaying homeownership; there is amazingly just not enough supply. Too much demand is leading to rising rent costs. Many renters in large cities can already expect to spend nearly half of their monthly income on a rental payment.
As our economy returns to normal, it's understandable to cheer the housing recovery. On a monthly basis, owning a home can be affordable, especially compared to rent.
More than 85% of U.S. markets have rents that exceed 30% of the household income of renters. Rents are accelerating at a more rapid pace than home prices, which are moderating. It is more affordable to buy in more than three-quarters of U.S. cities.
As of February 2016, average apartment rent within 10 miles of Charlotte, NC is $1169. On a one bedroom you're looking at $1019 a month, and a two bedroom runs $1290. The most expensive Charlotte neighborhoods are the First, Third and Fourth Wards, and the cheapest are Farm Pond, Eastway-Sheffied Park and Eastland Wilora Lake.
In markets where home prices are still relatively affordable, 2016 may be a good time for renters to take the steps into homeownership. Renting offers no equity, no tax benefits, and no protection against regular rent increases. Writing a rent check is just like watching your heard-earned money fly away.
A mortgage acts like a forced savings plan, even if you're paying the bank hundreds of thousands of dollars in interest for the privilege of building equity. Buying a home is 23% cheaper than renting nationwide for millennials, and now is the best time to buy since 2012 when interest rates were a tad lower.
When you're the homeowner, you're in charge. You make the decisions of who fixes your stuff, and how soon it gets fixed. If they aren't coming when you want, you can call someone else. Buying lets you customize your space also. You can knock down a wall to make that room of your dreams. Paint walls any color you like, personalize your landscape. The possibilities are endless when it becomes yours without the worry of losing your security deposit.
When you're ready to leave renting behind and be the proud owner of a home give Jenny Linich Real Estate a call, we're ready to find you the home of your dreams!