For years, people have often cited an increase in cost as one of the main reasons they don't want to own a home. The general thinking has always been that renting is a more affordable option and that owning a home would only place more stress on a resident.
But across the country - and especially in San Diego - things are changing. The city already has a great economy, with plenty of jobs being formed each year. Combine that with a great downtown scene, and it's not hard to see why San Diego is a location more and more people are moving to. And over the last few years, rent has continued to go up. But mortgages are falling in the city in a big way.
According to this article, those renting in San Diego County spent as much as 42 percent of their annual income just on their rent. But mortgages are lower - the average homeowner in the area spends just around 34 percent of their annual income on a mortgage. The actual amount that homeowners pay has risen by a very small amount, but the amount of rent that they pay has spiked dramatically.
In fact, over the last two decades rent prices have increased by more than 7 percent, rising from 34.7 percent of the average income to that 42 percent level. San Diego homeowners, by comparison, only saw their costs rise by .3 percent in the same timeframe. In short, you can now officially buy a home in San Diego cheaper than you can rent it. And that's good news for people who are ready to settle down and call the city home.
It's not just San Diego. Rent prices around the country are rising. The stats on San Diego are mirrored by national trends as noted by Zillow, and the average homeowner spends $3,300 less on mortgage than they would on rent. And since many of today's millennials are now at the point in their life where home ownership is attractive, there really has never been a better time to consider what the city has to offer in its real estate market.
Consider some of the other benefits of being a homeowner:
- Your home is yours, and you are allowed to renovate or change it to suit your mood and style
- Your home is a serious investment that can be used to improve your financial stability and your overall future
- Owning a home can bring peace of mind and a sense of pride that renting can't
- Homeowners are able to secure loans and receive other services easier than renters, and insurance policies are often easier to get and protect you more at a lower cost than renter's insurance might
Simply put, if you are already a renter in San Diego or are about to move to the city, there has never been a better time than right now to consider becoming a homeowner. It's something that could change your life and give you a solid investment as well as actually saving you money.