Is It Better to Buy or Rent a Home in Fairbanks, Anchorage, Eagle River, Wasilla, Palmer, North Pole?
One of the most important questions facing Alaskan homebuyers today, and perhaps one of the most common, is the age-old, "to buy or to rent?" When comparing current mortgage rates and the benefits of homeownership versus those of renting, the answer is pretty obvious. In fact, the latest Rent Vs. Buy Report from Trulia shows that homeownership is now 35% less expensive than renting!
In addition to that exciting statistic for Alaskan homebuyers, the burden of housing costs also just fell for the third consecutive year, according to the U.S. Census' American Community Survey.
One aspect of housing costs you may not be considering is that while they do indeed fall on homeowners, they tend to fall most heavily on renters. Realtor Magazine recently reported, "26 percent of homeowners were considered burdened by household expenses (ie. spending more than 30 percent of their income on housing," as compared to half of all renters at 49 percent."
And the number of households nationwide who spent more than 30 percent of their income on housing continues to fall. The figure for 2013 dwindled down to 39.6 million from 40.9 million the year before and 42.7 million in 2010. What does that mean for you as a homebuyer in Fairbanks, Anchorage, Eagle River, North Pole, Wasilla or Palmer? That the average homeowner is spending less per month on housing than renters and now is the time to take advantage!
It is more common today for renters to pay more than 50 percent of their incomes toward housing, while housing affordability remains more reachable for homeowners. Not to mention, today's mortgage rates are hovering around historic lows. Take a look at how they have changed over the past few years:
Interest rates have come a long way and coupled with programs in place to lessen your down payment and make your monthly mortgage more affordable, homeownership is clearly the best financial investment.
If you're ready to make the transition from renter to homeowner in Fairbanks or Anchorage this summer, Madden Real Estate is here to help! We can help you find your dream home in an affordable range and walk you through the home buying process— just give us a call!