Buy or Rent?

on Friday, 22 August 2014.

There was once a time when buying a house was considered a guaranteed winner of an investment.

But the inflating and subsequent burst of the housing bubble has left many skeptical of the long-term value of owning a home.

Further, many households are less willing to take on such a large fixed liability.

As a result, rentals have been hot.

And while home prices and sales have rebounded recently, it continues to be much cheaper — on average — to make mortgage payments than rental payments in the U.S.

"Nationally, the share of income that households must devote to rent has increased steadily and consistently since 2000, as the increase in rent has dramatically outpaced the growth in income over the same period," Zillow's Krishna Rao said.

"Over the period from 2000 to 2014, median household income has increased by 25.4 percent, while rents have increased over 52.8 percent, more than twice as much. On the heels of our recent analysis showing the erosion of affordability of homes for purchase, this represents even more bad news for those looking for housing," Rao said.

Check out this chart from Zillow for some historical context:

rental affordabilityZillow.com









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I want to say a huge thank you.  It feels a million times better knowing where we will be living, that we don't have to move, and I can actually afford to live here.  My life is no longer on hold, and we have been able to make plans for the first time in ages. There is no more black cloud of uncertainty hanging over my head always, waiting for the bank to dictate so much of my life. Thank you, thank you, thank you!
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Thank you for taking the time to talk to me and put my heart at rest! I look forward to working with you to stay in our home.  I have an appointment with a housing counselor your referred us to and I will give you an update once that occurs.  Again, it meant so very much to me that you took the time to give me hope.
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