Rental Costs Are on the Rise: Why Owning a Home Is More Attractive Than Ever

According to the Census Bureau, for the first time in a decade, the average rental cost rose by 3.8%, the sharpest increase since 2011, and outpaced median home values in 2023, making the prospect of homeownership more attractive- and attainable.

Nearly Half of All Renter Households Classified as “Cost-Burdened”

The U.S. Department of Housing and Urban Development defines "cost-burdened" households as those spending more than 30% of their income on housing costs.

In 2023, the department found that nearly half of all renter households were classified as cost-burdened, dedicating over a third of their income to housing.

Where Renting Costs More Than Owning

In some areas, the idea of homeownership is becoming significantly more attainable than renting.

A recent report from Zillow identified 22 U.S. metro areas where mortgage payments are less than rental payments.

Rank	Metro Area
1	New Orleans
2	Chicago
3	Pittsburgh
4	Miami
5	Memphis
6	Cleveland
7	Detroit
8	Tampa
9	Oklahoma City
10	Houston
11	Birmingham
12	Indianapolis
13	St. Louis
14	Louisville
15	Cincinnati
16	Orlando
17	New York
18	Hartford
19	San Antonio
20	Philadelphia
21	Virginia Beach
22	Buffalo

80% of First-Time Buyers Qualify for Down Payment Assistance, Only 13% Are Taking Advantage

One significant barrier for many first-time homebuyers is the down payment, but surprisingly, while 80% of first-time buyers qualify for down payment assistance, only 13% actually take advantage of it, according to Realtor.com.

It's crucial for prospective homeowners to explore the various resources available to them.

Loan options requiring as little as 3% down, or even 0% for Veteran borrowers, help make homeownership more attainable. In addition, down payment assistance programs, including grants, can help alleviate the financial burden of upfront costs.

Closing Thoughts

In the face of rising rental costs, the shift towards homeownership is more pertinent than ever. By taking advantage of down payment assistance programs and understanding the true benefits of owning, you can start paving the way toward a more secure financial future.

If you're ready to explore the world of homeownership, our team is here to guide you every step of the way. Don’t let rising rents keep you from achieving your dream home- let’s find the best mortgage solution for you today!

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