Home Affordability in the U.S.
The report highlights that buying a home in the U.S. is currently less affordable than in the past 17 years, with over 35% of the average wage going towards home costs. Owning a home is still seen as part of the 'American Dream,' but factors like home prices, rents, and mortgage rates need to be considered. The decision to buy or rent depends on various factors, including the length of stay and financial considerations.
Key Points
- Over 35% of the average wage is currently going towards home costs in the U.S.
- Home prices have climbed 47% over the past five years.
- Experts recommend spending no more than 30% of gross income on housing.
Pros
- Building equity through homeownership
- Having a space to call your own
- Potential for appreciation in home value
Cons
- Monthly costs may be unpredictable
- Less flexibility if you want to move
- Risk of home value depreciation