75 Percent Of Renters Have Been Misinformed

Dated: 11/12/2018

Views: 33

Recently, multiple headlines have asserted that homeownership is less affordable today than at any other time in the last decade. Team Nest Builder knows that although the headlines are accurate, they lack context and lead too many Americans to believe that they can’t partake in a major part of the American Dream – owning a home.

Have YOU been misinformed?


In 2008, the housing market crashed and home values fell by as much as 60% in certain markets. This was the major trigger to the Great Recession we experienced from 2008 to 2010. To come back from that recession, mortgage interest rates were pushed down to levels that were never seen before.

For the last ten years, you could purchase a home at a dramatically discounted price and attain a mortgage at a historically low mortgage rate.

Affordability skyrocketed.

Now that home values have returned to where they should be, and mortgage rates are beginning to increase, it is less affordable to own a home than it was over the last ten years.

However, what is not being reported is that it is MORE AFFORDABLE to own a home today than at any other time since 1985 (when data was first collected on this point).

If you take out the years after the crash, affordability today is greater than it has been at almost any time in American history.

This has not been adequately reported which has led to many Americans believing that they cannot currently afford a home.

As an example, the latest edition of Freddie Mac’s Research: Profile of Today’s Renter reveals that 75% of renters now believe it is more affordable to rent than to own their own homes. This percentage is the highest ever recorded. The challenge is that this belief is incorrect. Study after study has proven that in today’s market, it is less expensive to own a home than it is to rent a home in the United States.

Thankfully, some are starting to see this situation and accurately report on it. The National Association of Realtors, in their 2019 Housing Forecast, mentions this concern:

“While the U.S. is experiencing historically normal levels of affordability, potential buyers may be staying out of the market because of perceived problems with affordability.”

Bottom Line

If you are one of the many renters who would like to own their own homes, let’s get together to find out if homeownership is affordable for you right now.  Contact Team Nest Builder’s Lynn Garafola at 973-222-3777. Looking for a great 3BR apartment at a super price, allowing you to save up for a home down payment? Click HERE to view this Morristown beauty!


Liked this article? Check out our blog for loads of helpful information on real estate, home improvement and community events!

Source:  KeepingCurrentMatters.com



Latest Blog Posts

75 Percent Of Renters Have Been Misinformed

Recently, multiple headlines have asserted that homeownership is less affordable today than at any other time in the last decade. Team Nest Builder knows that although the headlines are accurate,

Read More

Join Us In Giving The Gift Of Warmth This Season

We’re partnering again with United Way of Northern New Jersey, the New Jersey Herald, and several local businesses and human service agencies for the annual Gift of Warmth new coat drive, seeking

Read More

Visit 2 Fantastic Sparta OPEN HOUSES This Weekend

This weekend, visit 2 super homes in Sparta at Team Nest Builder OPEN HOUSES!  Sparta's fantastic school system provides wonderful educational opportunities, and as one of 2018's top 100

Read More

Super Sparta 55 Plus Studio And Awesome 3BR Morristown Apartment For Rent

Team Nest Builder offers TWO fantastic apartments--a 55+ studio in Sparta and a 3BR in Morristown--read on and check them out!84 Sparta Ave., #301,  Sparta If you're 55+ and seeking a

Read More