Thursday, September 23, 2021 / by Flr Team
There are many non-financial benefits of buying your own home. However, today’s headlines seem to be focusing primarily on the financial aspects of homeownership- specifically affordability. Many articles are making the claim that it’s not affordable to buy a home in today’s market, however, that is not the case.
It’s Not That Homes Are Unaffordable - It’s That They’re Less Affordable
Since home prices are rising, it is true that homes are less affordable. To paint the full picture, you have to look at how today stacks up the historical data. A closer analysis of affordability going further back in time reveals that homes today are actually more affordable than any time from 1975 to 2005.
Despite that, the chatter about affordability is pushing some buyers to the sidelines making them feel uncomfortable knowing the owners got a better deal a year ago.
However, Are Homes Really Less Affordable If We Consider Equity?
When adding equity build-up into the equation, the cost of renting is $3,140 more expensive than owning. In a recent analysis, it showed that it’s less expensive to own in each of the top 50 markets in the country when including the equity component.
Bottom line, if you’re on the fence about whether to buy or rent, contact our team at Florida Lifestyle Realty where our group of agents can help determine if the equity increase in your local market should impact your decision. You may be surprised to find out what you can actually afford.
Florida Lifestyle Realty