Is your rent in Central Florida too high? You may be better off buying a house next year, according to a new report!
Greater Orlando joins 58 percent of U.S. housing markets where buying is more affordable than renting, even though home sale prices are rising faster than rental rates in 55 percent of those markets.
Homeowners in the Greater Orlando area spent an average of 35.4 percent of their wages on housing, while renters coughed up an average of 43.4 percent. The rule of thumb for years has been that monthly housing costs shouldn’t exceed 28 percent of gross monthly income.
Here’s a closer look by county at what percentage of Central Floridians’ wages went toward their home mortgage or rental costs in 2015:
Orange County: Home 32.8 percent, rent 38.2 percent
Osceola County: Home 35.5 percent, rent 47.3 percent
Seminole County: Home 34.6 percent, rent 39.2 percent
Lake County: Home 38.5 percent, rent 48.8 percent
“Renters in 2016 will be caught between a bit of a rock and a hard place, with rents becoming less affordable as they rise faster than wages, but home prices rising even faster than rents,” said Daren Blomquist, vice president of RealtyTrac. “In markets where home prices are still relatively affordable, 2016 may be a good time for some renters to take the plunge into homeownership before rising prices and possibly rising interest rates make it increasingly tougher to afford to buy a home.”
I have always been able to help home buyers and sellers find the best solution for their real estate needs. I understand the Central Florida real estate market so the solutions I provide are designed to be a perfect fit for the lives and financial needs of my clients. Trust a Greater Orlando realtor who does the “next right thing” to help the client find the perfect realty solution… call David Dorman!