ABR, CDPE, CLHMS, CRS, e-PRO, GRI, SRES
Luxury Home Marketing
It's not just my business, it's my neighborhood.®

Millennials Rent vs Buy

AffDash_white-5d055f[1]

Millennials (18-34) overall have conservative views on homeownership.

However, low interest rates and affordable mortgage payments are encouraging, and skyrocketing rents are compelling motivation for them to make a change in their housing situation.

Rent has become increasingly unaffordable.

The question isn’t “Why don’t millennials want to buy a home?” It’s “When and what can they afford to buy?” I can help you answer that!

The issue facing millennials and other first-time home buyers is whether it’s more economical to continue renting or to make the leap and purchase a home. To help determine that, renters need to identify their breakeven horizon — the number of years they will need to own and live in a home until it becomes more financially advantageous than renting the same home.

Current renters spend roughly 30 percent of their household income on housing; home buyers spend about 15 percent of their monthly income on a mortgage payment for a typical home.

No Comments

Comments are now closed.