Rent vs. Buy is the age-old question. And spending more time at home, during the pandemic, is making you think long and hard about purchasing a home instead of paying a landlord and renting one? If so, you’re not alone. But, does it make sense financially in your favor as home prices continue to rise throughout Nebraska and Iowa? According to the experts, it’s still more affordable to buy a home than rent one. Let’s dive in further.
In two-thirds of US counties, owning a home is cheaper than renting. Douglas, Lancaster, and Pottawattamie counties in Nebraska and Iowa are no different. In a recent report from ATTOM Data Solutions, owning a median-priced three-bedroom home is more affordable than renting a three-bedroom property in 63% of the counties analyzed for the research.
Home prices are rising faster than rents and wages in a majority of the country. Yet, homeownership in Omaha, Council Bluffs, and Lincoln is still more affordable. The record low-interest rates have helped keep the cost of rising home prices in check. Declining interest rates are having a noticeable impact on homeownership in southwest Iowa and southeast Nebraska.
We sat down with veteran real estate agent, Chris Bober, and asked him his thoughts on the market conditions in the Omaha/Council Bluffs metro areas. "Right now is a great time to purchase a home! With interest rates at historic lows, you can lock in your payment while your home appreciates in value. After 10 years of economic growth, many experts are expecting inflation of goods and services. While the cost of gas, food, supplies, interest rates, and rental rates go up your mortgage payment stays the same! Homeownership is the perfect hedge against future inflation!”
Amid the uncertainty of last year, the US housing market remained remarkably strong despite the COVID-19 pandemic. Record low mortgage rates played a significant role in the strength of the housing market in Nebraska and Iowa.
Are you even ready for the rent vs. buy discussion and how soon do renters need to start the process? Experts suggest renters have a reliable income and a good credit score. Nebraska Realty can connect you with trustworthy mortgage lenders in your area. Even if interest rates start to rise, as they are predicted they will, the rate increase will be modest, leaving current renters in a very good place to pursue the new home of their dreams.
If you’re considering buying a home this year, connect with a Nebraska Realty agent today to discuss the options that match your budget while affordability is in your favor.
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