20 Jun In Many Markets Buying A Home Is More Affordable Than Renting
June 20th, 2022
The rental market is seeing rent increases just as fast as home prices. In fact, a report from Redfin shows that rents across the nation for available apartments rose 15% over 2021. The median listed rent for an available apartment is now over $2,000 a month for the first time. Realtor.com reports that rent growth has created a situation where buying a home is actually more affordable than renting in 26 of the 50 largest U.S. metro markets.
Realtor.com analysis calculated that the monthly cost of a starter home was on average $323 lower than the typical rent payment in January of 2022.
Many renters might believe that they don’t have an option because of rising interest rates and they don’t have a large down payment. The sentiment is that housing is just getting less affordable across the board and so it makes sense to keep renting. That does not have to be the case. And more people who continue to rent will drive up the demand and further rent increases.
Any renter who wants to purchase a home should call a lender regardless if they think they qualify or not. For those who are not eligible to purchase now, a licensed mortgage advisor with Angel Oak Home Loans can work with them on a plan to make it happen in the future. We have worked with clients over the course of a year or more and made it to the closing table. For those who are eligible, there are many loan options that help with affordability.
Reach out to us and learn about:
- Loan options with low down payment options
- Interest-only loans to help with low monthly payments
- Loans that allow just one year out of a foreclosure or two years out of a bankruptcy
- Flexible requirements for buyers with unique circumstances
- How to stop investing in someone else’s property, and start investing in your own