Buying vs Renting a Home - Oz Lending

Buying vs Renting a Home

Buying a home or refinancing?

Oz Lending will help you find the best mortgage loan program to fit your budget and your needs.

Quick Links
Knowledge Center
owning vs renting

Buying vs Renting a Home

 

Owning a Home Is Still More Affordable Than Renting One

 

Is it better to rent than to buy a home? It is a common and very sensible question, especially since more and more people are spending more time in their homes. You may be wondering if the dollars and cents add up in your favor as home prices continue to rise. According to the experts, in many cases, it’s still more affordable to buy a home than rent one. Here’s why.

ATTOM Data Solutions recently released the 2021 Rental Affordability Report, which states:

Owning a median-priced three-bedroom home is more affordable than renting a three-bedroom property in 572, or 63 percent of the 915 U.S. counties analyzed for the report.

That has happened even though median home prices have increased more than average rents over the past year in 83 percent of those counties and have risen more than wages in almost two-thirds of the nation.”

How is this possible?

The answer: historically low mortgage interest rates. Todd Teta, Chief Product Officer with ATTOM Data Solutions, explains:

“Home-prices are rising faster than rents and wages in a majority of the country. Yet, home ownership is still more affordable, as amazingly low mortgage rates that dropped below 3 percent are helping to keep the cost of rising home prices in check.

In 2020, mortgage rates reached all-time lows 16 times, and so far, they’re continuing to hover in low territory this year. These low rates are a big factor in driving affordability. Teta also notes:

“It’s startling to see that kind of trend. But it shows how both the cost of renting has been relatively high compared to the cost of ownership and how declining interest rates are having a notable impact on the housing market and homeownership. The coming year is totally uncertain, amid so many questions connected to the Coronavirus pandemic and the broader economy. But right now, owning a home still appears to be a financially-sound choice for those who can afford it.”

If you’re considering buying a home this year, contact Oz Lending and we will help guide you through the mortgage process and determine that is the best loan and amount for you and your budget.

Share This Post

Ready to get funded?

get a free rate quote today

Whether it’s refinancing, buying a new home, building a home, or applying for home equity loans or second mortgages; we have an experienced, around the clock, qualified team of accessible “Wizards” who are with you every step of the homeownership process.

3009 112th Ave NE
Suite 200
Bellevue, WA 98004

NMLS ID 27830

Axia Home Loans does not represent HUD or FHA and the information provided here was not authored, approved, or endorsed by HUD or FHA. Axia Home Loans is the sole author and originator of this information. An FHA home loan is a mortgage originated by a lender that is insured by the Federal Housing Administration. Our business services or products do not originate from HUD or FHA

Copyright © 2024 – Axia Home Loans is a registered trade name of Axia Financial, LLC – NMLS# 27830, 3009 112th Ave NE, Suite 200, Bellevue, WA 98004