Homeownership is a big problem. It’s one of the main ways Americans can build wealth, and when it gets in the way, not being able to buy property will hurt communities for generations. In today’s housing environment, it seems like you crave a mortgage rather than a rent notice — after all, it’s less likely to spike when your landlord changes. But for a large number of Americans, that may not work.
Attom Data, a real estate database company, has released its 2020 Rental Affordability Report with some interesting information for tenants. The first big number the company shares is that “owning a three-bedroom home with an average price would be more affordable than renting a three-bedroom property at 455, or 53%, of the 855 U.S. counties analyzed for the report.” That seems shocking enough, But looking deeper, the report reveals a more worrisome trend: In counties with the largest population (500,000 or more people), renting is more affordable than owning in nearly 70% of them, causing ownership to essentially be eliminated within reach where the majority of young and minority Americans tend to give birth. live.
The data is not much more secure. In about two-thirds of the housing market surveyed, house prices are rising faster than both rents and wages. Overall, it’s hardly surprising that millennials would rather stay the same. That said, if you’re looking to buy, there are certainly ways to stay ahead in this deeply absurd housing market. Make sure you plan ahead as thoroughly as possible – and if you still fail, until you get there, don’t forget how valuable life with your roommate is.