Have you recently looked into renting a new home and been shocked by the high costs all around? You aren’t the only one. According to a report from CNBC, renters in the U.S. now are expected to pay 30% of their monthly income to rent alone, up 6% from pre-housing boom levels. Depending on where you live, that number can jump to as high as 40-50% of your income, specifically in areas like Los Angeles and New York.
That’s an astronomical number to be paying for something you will likely never own. And with more people renting now than ever, there just are not enough new apartment buildings to keep up with consumer demand.
This isn’t all necessarily a bad thing. While the renting market is hovering near historic highs, buyers are spending half as much as renters, 15% of their monthly income on average, on mortgage payments. Unlike with rent, this is actually down 6% from pre-housing boom levels.
And the numbers indicate that owning will be cheaper than renting for the foreseeable future. Even if rates nearly double to 6% in the next year, home owners will still be spending less than 30% of their income on average for mortgage.
To put things simply, if there was ever a time to stop renting and start owning, it would be now. With the recent loosening of credit restrictions for new home owners, buying your dream home today may be more realistic than it’s ever been.
So what are you waiting for? Get a free MonsterLoans quote today!