Although the headlined “Don’t Buy a Home Without Doing This First” tip was good enough advice (“build your budget”), the details for how to accomplish that were hardly groundbreakers:
- Experts advise holding mortgage payments to a maximum of 28% of gross income.
- Budget for more than just the mortgage amount: allow for upkeep and extras, remembering that “rent is the most you will pay, but the mortgage payment is the least.”
- Budget no more than three to five times annual earnings…etc.
On the other hand, some of the supporting information was data I haven’t seen elsewhere. Boise Idaho first-time homeowner candidates may have been feeling the impact of what was revealed, but seeing the numerical proof could be decisive. There were two sobering pieces of data:
First, in 2017, renters nationwide spent an average of $2,000 more to keep a roof over their heads than they had in similar periods. The source is a research study based on a comparison with previous typical housing markets. Whereas the 2017 median U.S. rental required 29.1% of income, in earlier periods that percentage was just 25.8%.
Second, while renting a home continues to get pricier, current owners are experiencing the opposite. They are spending less on housing payments—about $3,300 less!
Boise Idaho renters may have suspected the first piece of news, but until now have had no way to confirm the second. CBSNews summed it up well: “It’s enough to make renters run to their nearest realtor.”
Thank you, CBSNews—I couldn’t have said it better!
