It’s more affordable to buy a home now in most U.S. metros than it was 15 years ago, even for millennials 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, homebuyers making the nation’s median income and purchasing the typical U.S. 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.
In contrast, renters spent 29.9% of their monthly income on rent in the third quarter of 2014, up from 24.9% historically. In Seattle, the difference is less, but rents are skyrocketing in some Puget Sound areas, so the statistics may not be current with our market. Read more…