Because buying a home is such a major undertaking, it’s easy to assume that it’s more expensive than finding a place to rent. That, however, isn’t necessarily true. In fact, buying remains the more affordable option in many markets across the country. A recent report from Zillow highlights some of the reasons why that is. For one, when home prices crashed, rental costs didn’t. That means, rent continued to head upward while home values were making up for lost ground. So, though home prices have largely recovered from their post-crash lows, they remain below their peak in most areas. The other reason buying a house remains the more affordable option is mortgage rates. While they’ve been climbing recently, they are still low by historical standards. And, with historically low rates helping to alleviate some of the effects of higher prices, affordability and monthly housing costs are kept under control. Going forward, Zillow predicts rental cost growth will begin to fall in the coming year. That’s good news for the real estate market, as it will provide some relief to younger renters who may struggle to save for a down payment on their first home. More here.
