FORT WAYNE, Ind. (WANE) – With today’s housing market, many are wondering if it’s better to rent or buy a home… and experts say, the answer is not a simple one over the other.
In the Midwest, there is a huge lack of affordable housing supply. Demand is higher than the housing stock that is available to purchase. This in turn is making purchasing a home more competitive. You also have to look at the cost of homes.
Business Intelligence Manager Doug Ressler says housing affordability is impacted by a few things, like mortgage and rental rates, and income levels. Supply chain issues and inflation also play a role.
“You have supply chain issues that are driving the cost of material up so the ability to build affordable housing be challenged by the materials is supply also inflation,” Ressler added, “those things have to be considered in terms of future buys.”
Ressler says this will also have an affect on loan amounts given out. He says during the last ten years we’ve had cheap money (or low interest rates) for loans, and predicts that to rise dramatically.
So when deciding to rent or purchase, experts say there are a few things to consider.
- Examine your budget.
- Compare the costs of home loans.
- Weigh the pros and cons of buying or renting by looking at things like the average monthly cost of renting, and estimated mortgage payments.
According to a study conducted by RentCafe, Fort Wayne is ranked the 47th fastest place to save for a down payment. The area median starter home price is $115,485, with a down payment value of a little over $23,000. Results show that based off of these numbers, one can save for a down payment in 6 years and 2 months. You can find the full study here.