Renting costs twice as much as owning a home in US cities
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People renting a home in the United States can expect to pay twice as much of their incomes on their rent than an owner on mortgage payments, new research has found.
It means that it is more affordable to buy a home now in most US metros than it was 15 years ago, even for those putting down less money on a home, according to a Zillow analysis of third quarter income and home value data.
Renters, however, continue to pay an increasing share of their income to their landlords as rents soar and incomes remain flat.
On average, US home buyers making the nation’s median income and purchasing the typical home spend 15.3% of their income on their monthly house payment, down from the historical norm of 22.1% during the pre-bubble period from 1985 to 1999.
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