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Buy or Rent in 2016

Buy or Rent in 2016

If you are a renter and are ready to buy, 2016 could be the year to make your move. In a recent study conducted by RealtyTrac, Inc., the rent versus buy story has taken a bit of a twist within many major metropolitan areas across the country. Over the last several years, since the housing crash of 2008, there has been a greater influx of families seeking to rent. With the greater numbers of renters in metro markets, it is no surprise that rental rates have risen to meet the demand. For many areas in the country, it is still more affordable to pay rent than to own a home, yet here in the Orlando- Kissimmee region, things are the other way around. On average, homeowners are spending less of their earnings toward mortgage payments than renters are paying to their landlords.

According the RealtyTrac report, our region is part of a growing trend, with 58% of our country’s major metro areas now seeing home ownership as more affordable than renting. Orlando homeowners are spending on average 35.4% of their earnings on housing costs where renters are spending 8% more, 43.4% of earnings. This is a significant difference that is worth considering if you are tired of paying someone else for a place to live. You may have thought you couldn’t afford to own a home before, but now it could very well be more feasible.

The report utilized data from the U.S. Department of Housing and Urban Development to garner rental information, and public records of home sales from over 500 counties in the nation with populations of 100,000 or more. In addition to these figures, RealtyTrac used earnings data from the U.S. Bureau of Labor Statistics. Together, these three main areas of data were reviewed and showed a growing trend in owning versus renting affordability. There are still many major metro areas where renting is more affordable than buying a home, especially with the latest increases in home values. But here in Central Florida, owning a home is now easier on the budget than renting.

Here is a breakdown of the percentages of earnings residents are paying by county in Central Florida:

  • Lake County: homeowners average 38.5%, renters average 48.8%
  • Osceola County: homeowners average 35.5%, renters average 47.3%
  • Orange County: homeowners average 32.8%, renters average 38.2%
  • Seminole County: homeowners average 34.6%, renters average 39.2%

With an average savings of 5-10% over rental costs, buying a home now could save you a lot of money over time. The average salary in Orlando, for example, is about $50,000. Saving 5% of your earnings could help you pocket over $2,000 in a year. If you are renting and have wanted to buy a home, I encourage you to look into the possibility of home ownership; 2016 could be the right time to buy your own home. I am proud to be able to make the real estate process move smoothly for my clients, and I am here to help with all of your real estate needs. if you’re looking for a warm and engaging professional to help you with the purchase or sale of your home, contact me today at 407-234-5313 or by email: Jeff@JeffRoyle.com.

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Jeff Royle

Royle Realty Group

1404 E. Concord St.
Orlando  Florida 32803

407-234-5313

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Information Deemed Reliable, but Not Guaranteed. The property information being provided is for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating to real estate for sale on this web site comes in part from the participating Brokers.

Last updated on Apr 26, 2017: 12:41 AM.

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