Cost Of Renting Hits All-Time High

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If you’re weighing whether to buy or rent your next home, some newly released numbers may influence your decision. That’s because a new analysis shows rent is more expensive than it has ever been. In fact, renters can now expect to spend 30.2 percent of their monthly income on rent. Typically, 30 percent is what economists say is an acceptable share of monthly income to spend on housing. And, though it is still within range, rent has historically been cheaper. A look at records dating back to 1979 shows renters paying closer to 24 percent of their income on average. But how does renting compare to buying in today’s market? Well, according to this analysis, a typical buyer can expect to pay just 15.1 percent of their monthly income toward their mortgage payment, which is significantly less than the historical average of 21.3 percent. That means, buying a home is still cheaper than renting in most markets and is also more affordable than it has been compared to years’ past. In other words, now is a good time to buy a home and it will continue to be as long as rents continue to climb. More here.

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