Should You Rent Or Buy? In North Carolina This Is The Better Option
You typically think of renting as being the most cost-effective (at least short-term) option for living. But if you’re like me with your rent steadily increasing year to year in a way your paycheck just isn’t. So it begs the question, would I better off just buying something? Turns out that is the better option on average in Charlotte. According to data shared with us by Today’s Homeowner, it’s actually cheaper to buy a home and pay off a 30-year mortgage in Charlotte than rent long-term. But with rent being so astronomical how can you even save up the money for a down payment?
Our friends at Today’s Homeowner analyzed the differential between the cost of owning and renting over a 30-year time period. They also surveyed renters about the barriers keeping them from home ownership. In Charlotte specifically, homeowners spend an average of $1,536 less than renters on housing costs yearly. And you may want to sit down for this fact- The average homeowner in Charlotte will spend a total of $1,143,134 over the course of 30 years. It’s not much cheaper than renting which will cost you $1,189,224. And I would wager it will end up being more with the cost of everything rising exponentially.
Some other interesting tidbits from the study are that rent costs Charlotte residents on average $1,845 a month. Well, I’m glad mine is below average but it’s still way too high. Still, just under 80% of renters have aspirations to own a home. But Today’s Homeowner says these are the biggest barriers keeping them from home ownership.
- 59% say they cannot afford a down payment on a home
- 47% say interest rates are too high right now
- 34% say there is nothing affordable near them right now
- 20% say consumer debt, like credit card debt, is holding them back
I personally agree with the 1/3 of people who say that there is nothing affordable. The prices are outrageous for seemingly nothing. Hopefully this calms down soon. You can read the full Today’s Homeowner study here.