At Home In Bozeman - Tim Hart

Renting a Home Vs Owning a Home

Rising rental costs are pressing renters to match and even outspend owners in housing costs! Since 2005, owner’s housing expenses have increased from 31.9% to 33.2% of their household budget. To compare, in that same time span, renter’s housing expenses have gone from 35.6% to 38.4%. (CoreLogic US Housing and Mortgage Trends).

Looking further back, over the last 26 years home owners have increased the amount spent on household expenses by 12% and renters by 22%. Still, home ownership rates continue to drop in most parts of the country. CoreLogic found homeownership in 25-to-34 year olds has dropped the most from 51.6% to 42%. In the 35-to-44 age group, homeownership declined from 71.2% to 62.3%.

These trends are startling considering Capital Economics found that for the first time in 30 years, the median monthly mortgage is equivalent or less than the median rental payment! Please, look into the options for buying a home and when you reach the point you are ready to take a step forward, visit me!