Rent vs own? Zillow takes a unique look at the question
Most of us are familiar with the conventional wisdom which dictates that individuals should not spend more than 30% of their total income on housing – whether it be rent or mortgage payments. Zillow took a close look at how much an average owner and renter spend in several large metro areas – and just how much money they have left over.
The report takes a look at how much a median-earning household spent on housing typical for the area. San Jose came in at the top spot – residents have to spend 34.1% of their median income on rent. However, said residents still have the most money left over – over eighty thousand dollars a year. While that number is impressive, San Jose is still one of the least affordable metropolitan areas in the United States.
Seattle, while not inexpensive, is an example of a city in which owning costs the median family less than renting. In our metropolitan area, the median percentage of total income spent on mortgage payments is 28.1%, while renters spend 30.9%. The United States average is 17.%% and 27.7%, respectively, further showing that Seattle real estate prices are holding strong.
The report addresses the factors which affect the cost of living in several metro areas, such transportation, taxes or education costs. We urge you to check out the report in its entirety here. Have questions about the current market? We’d love to talk! Contact us at firstname.lastname@example.org at 206.910.5000Email