This recent article in the Wall Street Journal sheds light on the topic of renting vs. buying a home. In many markets around the country, including many areas of Kansas City, the average qualified buyer can spend less on a monthly mortgage payment than he can to rent a similar property. This affordability is due largely to the declining home prices over the last few years and an interest rate which the FED has held at around 4%. According to the article:
“monthly mortgage payments on the median priced home—including taxes and insurance—are lower than the average rent levels in 12 metro areas”
Kansas City has one piece of the housing puzzle in place, affordability. Let’s hope 2012 brings more economic stability and prosperity so that buyers and sellers can reemerge into our market with confidence.