But then your rent goes up again. And again. And suddenly what seemed flexible starts to look expensive, especially considering you’re not building equity. And once that happens, it can be easy to feel a little trapped in the cycle.
That’s because there is so much talk these days about the fact that buying a house is not affordable. But the truth is, the math may work out better than you’d expect based on what’s changed recently.
Buying is cheaper than renting in many areas
Nowadays, in many places, owning a home costs less each month than renting a 3-bedroom house. And recently facts by ATOM shows this is true in almost 58% of US counties (see table below).
And that is after you take into account things like insurance and typical maintenance costs.
In other words, while it may feel like a shock, the numbers show that rent often stretches monthly budgets more then own. That’s thanks to slower home price growth, more homes for sale and monthly mortgage payments starting to decline as interest rates drop.
Affordability still varies per region
While the balance has shifted nationally, that doesn’t mean buying is now more affordable each market or for each tenant.
Although buying is cheaper than renting in almost 58% of rural counties, that share looks different depending on your situation region (see graph below):
The biggest improvement is in the Midwest and South. But if you live in the West, it can still feel cramped.
The takeaway? How affordable buying is really depends on where you live. And the only way to know how this will play out where you live is to look at the numbers on the ground.
What’s holding buyers back?
Maybe you’re nodding along so far, but you’re thinking: “Okay, but I still can’t afford the upfront costs.” If that’s your reaction, you’re not alone.
For many renters, the biggest hurdle isn’t just the monthly payment. It is also the down payment.
But you don’t have any options yet. This is the part most people don’t hear enough about: there are thousands of down payment assistance programs available across the country, and many buyers qualify without realizing it.
And the average benefit? About $18,000.
That kind of support can help cover some of your down payment or closing costs, meaning you may not have to save as much as you think to get started.
When you combine that with monthly payments that may work out better than expected, especially as interest rates continue to fall and prices cool, buying can feel much more realistic than it first seems.
In short
The point is not that everyone has to buy a house tomorrow.
The truth is, renting isn’t always the more affordable option people think it is – and buying can be more realistic than it feels when you look at the full picture.
If you’re renting and feel like you’re stuck in the “someday” loop, it may be worth having a simple conversation with a local real estate agent or lender. Just a chance to see what is possible and whether it makes sense for you.
#Renting #buying #numbers #surprise