Still wondering if buying versus renting is the right choice. Here’s how buyers decide to own or rent.
The Tampa real estate market is higher than the national average where it’s 40%-60% cheaper to buy versus renting. The national average is 45%
What are the factors that drive consumers to decide whether to buy or rent? Mortgage services provider FannieMae determined the answer to this question by interviewing 1,000 adults per month and asking them a series of 100 questions. The questions focused on demographics, housing attitudes and financial attitudes. The results of the Own-Rent Analysis were released in August.
What Do Buyers Have in Common?
The study found home buyers are more likely to already be homeowners.
Homeowners with a mortgage also shared the following characteristics:
- The majority were above the age of 35.
- The majority were employed full time.
- The average homeowner had income between $50,000-$100,000.
- An overwhelming, 77 percent, were married.
Twenty percent of households own their home without a mortgage. This demographic was generally over the age of 65 and retired.
What Do Renters Have in Common?
The primary factor that dissuades renters from purchasing is concern over being able to afford the purchase of a home and maintaining its upkeep.
Renters also shared the following characterizes:
- The majority were between 18-34.
- Only 47 percent of them were employed full time.
- The average income for a renter is under $25,000.
- Forty-one percent of renters are single.
Similarities Across Both Groups:
In a similar study, real estate data provider Trulia, found that in the 100 largest metro areas in the country it is cheaper to own than rent. Tampa Bay is higher than average statistically where it is 40%-60% cheaper to buy versus renting. However, it can still take up to a decade to save for a down payment.
When asked whether buying makes more financial sense in the long term, the majority of respondents believed it does.
Housing attitudes include having a positive or negative home buying experience, whether it is a good time to buy and whether renting or owning makes more sense.
Financial attitudes include the ability to get a mortgage, the ability to pay down debt and the financial benefits of homeownership.
Getting pre-qualified for a loan and speaking with a real estate agent is the first step if you are considering purchasing a house. If you are already pre-qualified and want to search homes for sale you can search all real estate in Tampa Bay here.
Wondering where you would be if you purchased a home in 1999? You can read my article on why Tampa Real Estate is a great long term investment here.
Sources:
Trulia: Buying a home is 45% cheaper than renting
Photo Credit: SomeECards
