Compare the Cost of Owning vs Renting
According to Zillow, the typical U.S. renter spends nearly $2,000 more per year than they would if that money was going toward their home. Here are some interesting statistics:
- The median U.S. rent accounts for 29% of a typical household income – up from 25.8% between 1985 and 2000.
- Today, renters in 34 of the nation’s largest markets spend a greater share of income on rent than they did historically.
- Homeowners spend $3,300 less per year on mortgage payments than they would if mortgage payments required the same share of income as they did historically.
If you’re renting today and have considered homeownership, qualifying for a home loan may not be as difficult as you think. A recent REALTORS? Confidence Index Survey*, 61% of first time homebuyers made a down payment of between 0% and 6%.