The Numbers Are In – Buying vs Renting

    The ups and downs of the real estate industry have dominated headlines for much of this young century.  What started out in the early 2000’s as a hot real estate market quickly dissipated into full blown panic by 2009.  Now we are in 2014 and it seems as if real estate buying is back in full force – we’ll look at some numbers shortly that will back this.

    When trying to decide on renting vs buying there is a very strong case for buying in 2014.

    “Nationally, the share of income that households must devote to rent has increased steadily and consistently since 2000, as the increase in rent has dramatically outpaced the growth in income over the same period,” Zillow’s Krishna Rao said.

    “Over the period from 2000 to 2014, median household income has increased by 25.4 percent, while rents have increased over 52.8 percent, more than twice as much. On the heels of our recent analysis showing the erosion of affordability of homes for purchase, this represents even more bad news for those looking for housing,” Rao said.   Business Insider

    You may be apprehensive about the commitment of buying, but in terms of money it just makes sense to make that purchase.   Here’s a great chart displaying the big disparity between rent affordability vs mortgage affordability.

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