This came from the Joint Center for Housing Studies at Harvard University, their latest study, and it took a look at the cost of owning a home in three different categories. Number one is the mortgage payment, and they did it in 1990, 2000, 2006, 2011. In 2011 an average house in this country ‐ and again, if you want all the methodologies and everything, you can go back to the resource center and get the actual report if you’d like, but what we’re seeing is that buying a house today is almost half the price of what it was buying it in 2006, when you’re talking about the actual mortgage payment. Let’s make sure people understand that. the payment to income ratio, which the banks somewhat control and say well, they’re going to give a loan if it’s based in this category, remain pretty constant until right now. People buying houses right now, if you had an average income and you bought and average priced house in this country, it would be less than 15 percent of your overall income, your payments on that house; almost half of what it was even in 1990. And the payment to rent ratio, meaning the higher it is, the more it favors rentals, we can see that what wound up taking place in 1990, in 2006, the payment to rent ratio was very high. Now it’s almost half that, meaning it’s cheaper to buy a house than to rent a house. - Courtesy of KCM Crew
Michele Herndon
813-523-9222
micheleherndon@me.com
http://www.TampaAndBeyond.com
http://www.ApolloBeachLuxuryHomes