Buying a home merits a special mention in an individual's list of life goals. No matter where an individual starts off in life or where one ends up, there's no bigger satisfaction for individuals than investing in a place for themselves.
This sounds easy, right? Doable, too. But, according to recently released analyses published in CNBC, investing in a house has gotten significantly difficult in the United States in recent years. According to statistics released by Realtor.com, there has been an increase of about 14% in the monthly house-buying costs in the past year.
In comparison, rent rates have been pretty stabilised posting an annual increase of merely four per cent in the past year. In other words, buying a house has become almost four times as costly as paying annual rent. Significant as this is for helping to understand the market volatility when it comes to investing in property, it is also additionally informative as it talks about a particular trend that could be followed.
That renting may be a viable option to follow for people. According to further statistics revealed, it has emerged that re-investing the savings from rent has become the favourable road to take. In 16 cities across the 23 surveyed in the United States, preference for rent has overridden preference for buying a house outright.
Despite these preferential aspects, market analysts emphasise that it would be economically better if this swing stops. According to Realtor.com's chief economist, Danielle Hale, "Since homeownership has historically been an important source of household wealth creation, it could be problematic if this trend continues for too long."
It is expected that given the increase in the job market there will be a change in the current continuity in the United States.