Contact Us Now! Ask Us Anything
480-470-8505 Call Us Today

75% of Renters Are Misinformed

Dated: 11/08/2018

Views: 14

Recently, multiple headlines have been written asserting that homeownership is less affordable today than at any other time in the last decade. Though 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.

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.


Recently, multiple headlines have been written asserting that homeownership is less affordable today than at any other time in the last decade. 

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.

Blog author image

Curtis Johnson

Curtis is a Best Selling Author, the Founder and CEO of The Curtis Johnson Team Powered By eXp Realty, where he runs a dynamic Real Estate Team having sold over almost 5,000 residential homes. The Wal....

Latest Blog Posts

What is the Cost of Waiting Until Next Year to Buy?

Some Highlights:The cost of waiting to buy is defined as the additional funds it would take to buy a home if prices & interest rates were to increase over a period of time.Freddie Mac 

Read More

Homes a Bargain Compared to Historic Norms

A loaf of bread used to be a nickel. A movie ticket was a dime.  Not anymore. Houses were also much less expensive than they are now. Inflation raised the price of all three of those items,

Read More

Buying a Home Young Key to Building Wealth

Homeowners who purchase their homes before the age of 35 are better prepared for retirement at age 60, according to a new Urban Institute study. The organization surveyed adults who turned

Read More

Selling Your Home? Ensure the Price is Right!

If you’ve ever watched “The Price is Right,” you know that the only way to win is to be the one to correctly guess the price of the item you want without going over! That

Read More