Comparing the Cost of Homeownership 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.Mortgage Affordability vs Rent Affordability - Comparing the Cost of Homeownership vs Renting

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%.

If you are trying to escape from the rental rut, check out our Millennial Guide to Buying. To speak with a Loan Advisor, call us at 877.684.4210 today.