Shaun Donovan, Secretary of Housing & Urban Development, recently stated, “We are in the midst of the worst rental affordability crisis that this country has known.” The numbers don’t lie — rent has climbed astronomically over the last decade. About half of renters spend more than 30% of their income on rent, up from 18% a decade ago, and 27% of renters are paying more than half of their income on rent.
The statistic illustrated above shows the startling difference in net worth between homeowenrs and renters. Homeowners’ average net worth is $174,500, while renters average only $5,100. This means the average homerowner’s net worth is over 30 times greater than a renter. If you know a renter who is considering buying, the time is now. With mortgage rates and prices increasing for 2014, homes are more affordable now than they will be in the future.
Categories: Home Buying