Does Homeownership Make Sense Financially

Dated: 05/04/2015

Views: 246

by the kcm crew 4/16/15

Everyone knows the social advantages of home ownership. However, some question the financial benefits of owning a home. Three recent studies shed some light on the issue.

RealtyTrac recently released a report comparing home price appreciation to wage growth over the last two years. The study revealed that home price appreciation has outpaced wage growth in 76% of U.S. housing markets during that time period. By how much? Here is a graph showing their findings:

Home Prices vs. Wages | Keeping Current Matters

And we all know the importance of home appreciation in determining the net wealth of most American families. Merrill Lynch just issued a report covering the issue. Their findings are shown here:

Average Home Equity | Keeping Current Matters

It obviously makes financial sense to be a homeowner.

But, does it make sense to buy now?

The survey company Pulsenomics just issued their findings on the cost of owning versus the cost of renting. They compared historical averages to the cost you can expect to pay today.

Buying vs. Renting | Keeping Current Matters

The cost of buying is far below historical averages. Renting is another story.

Blog author image

Jason DePaz

Jason has been a real estate broker since 2005 and has continued to sharpen his skills to become one of the most outstanding agents in Portland. Working with Jason you will find that he is an excelle....

Want to Advertise on this Site?

Latest Blog Posts

Portland Real Estate Market 2019

So how is the real estate market as of late...the numbers tell you things have cooled a bit.  Will we see an uptick with the freshly lowered interest rates.  Only time will tell. ;

Read More

How About A Little PDX Brain Candy

1. After getting lost in Indiana and making a 2,800 mile trip, Bobbie the Wonder Dog found his way back to his owner in Oregon in a true “Homeward Bound” story. He’s now buried at the Oregon

Read More

Closing Should Not Be Surprising

There are many potential homebuyers, and even sellers, who believe that they need at least a 20% down payment in order to buy a home or move on to their next home. Time after time, we realtors have

Read More

We Get It No One Likes Interest Rates

According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 4.09%, which is still very low in comparison

Read More