Did you know that 96% of Millennial investors show interest in making real estate investments? Meanwhile, among Boomer investors, only 83% are interested in real estate.
If you’re debating between renting a place in the Houston area, or finding a real estate agent and buying a home, you’re probably trying to decide which is the most financially secure choice. Before you start calling real estate agents or landlords, read on to find out how your finances will turn out differently based on your decision to rent or buy a home Houston TX.
Rent vs. Buy in Houston: Price Differences for the Long Term
It’s an unfortunate fact that, for most people, it takes many years to save up enough money to make a down payment on a house, whether in Houston or anywhere else. However, taking the time to get that money together will equal more savings down the road -- even more than experts used to think.
According to a recent study, homeowners in Houston spend a total of 13.9% less than their renting counterparts, on average. These conditions in Houston represent one of the biggest gaps in the entire country, making it a really good idea to become a homeowner in the Houston area.
According to the same study, the average mortgage bill for Houston residents (not including insurance or taxes) is just $814.05. This means that, on average, homeowners in Houston only spend 14.8% of their total income on their home -- that’s 2% less than the amount recommended by most financial advisors. On the other hand, renters are likely to spend 28.7% of their income on their monthly rent bill alone. That’s a full 13.9% difference
While this is a great deal compared to the rest of the country, it's an even better idea for the state of Texas. For example:
- In San Antonio, renters spend 28% of their income on rent, while homeowners spend only 15.7%, resulting in a difference of 12.3%.
- In the Dallas-Fort Worth area, renters spend an even 28% of their income, while homeowners spend an average of 16.4%, resulting in a difference of 11.6%.
- Austin experiences the smallest gap among major Texas cities, with renters spending 26.6% of their income, and homeowners spending 19.2% -- a gap of 7.4%.
Across the entire country, the largest differences can be found in the Miami-Fort Lauderdale area and New Orleans. These two locations tied with a gap of 16.4%. Around Miami, renters spend an average of 40.7% of their income on their rent, while homeowners spend just 23.8%. In the New Orleans area, renters pay 32.7%, and homeowners only pay 15.8% for their mortgage payment.
Interestingly, California cities San Francisco and San Jose experience opposite gaps -- with homeowners spending 3.3% and 11.6% more than renters, respectively.
Average Education Level for Homeowners in Texas Cities
The actual purpose of the study wasn’t to determine rent and ownership cost differences. In fact, it was conducted to discover what education level is usually required for people to afford their own homes in different housing markets. The news is good for Texans: in every Texas city mentioned above, only a high school diploma or GED is required for the average person to own their own home.
Hopefully this information will be helpful as you make your decision to call a qualified
real estate agent
today. Don't hesitate to contact Kay Harris to start looking for your dream home today.