Fun Facts About Renters (and Why You Should Consider Buying)

One of the most important financial decisions you have to make is whether to rent or own your home. While there are benefits to both renting and owning, many renters don't realize how much they could potentially be saving by investing in a home today. In today's blog, your Lake of the Ozarks mortgage lender offers a few facts and considerations about renting vs. buying.

Fun Facts About Renters

1. According to the National Multifamily Housing Council, 37% of households in the United States rent, while the other 63% prefer homeownership.

2. According to NAR Chief Economist Lawrence Yun, the average renter missed out on $41,000 in equity by not buying three years ago.

3. Nationally, 50% of all renters spend more than 30% of their income on housing according to the NY Times.

4. According to PulteGroup, 89% of renters think owning a home is part of the American Dream.

5. Approximately 32% of potential homebuyers plan to buy in the next couple years. 

6. Around 90% of millennials prefer owning a home over renting one. 

7. The median gross rent from 2011-2015 was $758.

8. Buying a home is roughly 45% less expensive than renting.

9. According to Trulia, rent prices have risen by 4.7% in the past year, while asking home prices have only risen 2.3%.

Considerations About Renting vs. Buying

While renting is a great short-term option, financial gains of homeownership are applicable if you plan to stay in the home for 5-10 years. With current interest rates extremely low, most renting situations are more expensive than owning. In addition, when you choose to rent, you aren't building equity. Creating an asset, providing a legacy and increasing net worth are all benefits of becoming a homeowner that you can't get as a renter. With the help of a mortgage professional at the Lake of the Ozarks, you can weigh the pros and cons of buying and renting to decide which option best suits you in the short-term and the long-term.    

While renting might be the best option for some people, you can see from the facts above that homeownership has its benefits. If you're considering purchasing a home at the Lake of the Ozarks, give me a call at 573-746-7211 to discuss your options. With mortgage rates still hovering near all-time lows, now is the time buy! I'm committed to working with you every step of the way. I'll discuss Lake of the Ozarks home financing options, offer competitive interest rates and back it up with the first-class service you deserve! 

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Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.