Nearly a third of American households were labeled cost-burdened last year because they are spending more than 30 percent of their total household income for housing. The report done by the Joint Center for Housing Studies of Harvard University looked at both homeowners and renters.
Today’s low mortgage rates help the cost of housing in many markets to be lower for owners than renters. The total house payment can easily be lower than the rent buyers are paying. Other factors like principal reduction and appreciation provide equity enjoyed by owners that renters cannot realize.
Analysis can compare the costs of renting over owning. To look at your own numbers, go to this Rent vs. Own. If you need help or have questions, give me a call at (843) 683-9592.