According to an article in RealtorMag this week “About half of renters spend more than 30 percent of their income on rent, up from 18 percent a decade ago, according to newly released research by Harvard’s Joint Center for Housing Studies. Twenty-seven percent of renters are paying more than half of their income on rent.” In summary, we are facing the worst rental affordability crisis in US history. My adult children certainly fit that profile. One in San Francisco, one in Los Angeles and one in Seoul, South Korea- all spending above the “recommended maximum” of 30% of income, but none of them ready to set down roots long enough to purchase a home. Of course, these three have opted to choose cities famous for high-priced living and they are happy to trade rental dollars for the opportunity to be young and living in a vibrant and culturally diverse environment. But, hopefully, at some point their income will rise enough to accommodate their housing and get them back below the recommended 30% before their bank accounts dry up!
Starting small. Keeping it affordable.
More importantly, the statement from RealtorMag is a reminder to reassess where you are with respect to housing dollars. If you are spending a considerable amount on a rental property, is it time to look for an affordable property to purchase? Would you be better off from a tax standpoint, from a disposable income standpoint, from a security standpoint to purchase a home? Have you saved enough for a down payment? Can you qualify for a loan? These are just a few of the things to consider.
If you have any questions about the process or your options, we’d be happy to sit down with you and walk you through the process and give you some idea what is out there and how you can make home ownership a reality in the Upper Valley. Take a look through properties on our website and familiarize yourself with the market or give Carol or Matt a call at 603.643.4800. Who knows, maybe 2014 is the Year of the Home for you!