Non-homeowners in SF could spend $2.5 million in rent by age 60

A new report finds that those who put their money into rent rather than home equity blow an

estimated $2.5 million between the ages of 25 and 60.

The study by the personal finance site Go Banking Rates (see the article by Gabriele Olya - June 6, 2018) looked at how much someone who starts paying rent at 25 would spend by ages 30, 40, 50 and 60 in America's 25 most populous cities.

I like to put things in perspective: in real life most people would move at some point or other, relocate, change jobs or change their family situation.

Purchasing a home is not always the best option: it depends on many factors - job stability, savings, goals in life, priorities, family situations etc...  Still, the information is an important part of the equation when considering a home purchase.
.... As is the current home ownership rate in the US: 64.4%.

Any question regarding a real estate purchase or sale? Or trying to understand the parameters? Let me know!   
Thanks for reading,

Francis

My Home Valuation tool
Detailed, local trends etc...
Current mortgage rates   (came down a bit, thank you Wall Street  ;-) 

America's Rental Housing

America's Rental Housing.

It is no secret that finding a place to call home in the Bay Area has become a problem, both as a purchase and as a rental.  Rents have gone up very significantly in the past 3 to 4 years, with a steep acceleration as early as mid 2012.  The front page of the San Jose Mercury News today 4/16/14 talks about it and prints: " Region's average asking rent is now $2,043 after three years of double-digit annual growth".

But this is not limited at all to our area. Nationwide, there is a similar problem, as studied and explained in the Rental Housing Report of the Harvard’s Joint Center for Housing Studies (Dec. of 2013). In many ways, the situation has to give us pause.

• Half of US renters pay more than 30% of their income on rent,
• 19% of  all renters 10 years ago were paying more than ½ their income on rent; they represent 27% now.
• 31 % of Americans were renting in 2004, they are 35% in 2012.
• Between 2000 and 2013, median rents nationally (adjusted for inflation) increased by 6%, while the median income of renters dropped by 13%. 
• The shortfall in the number of units affordable to extremely low-income renters in the U.S. (those earning no more than 30 percent of the area median) more than doubled from 1.9 million in 2001 to 4.9 million in 2011.

Harvard's Joint Center for Housing Studies Article.
If you want a copy of the SJ Merc. article let me know.

Francis
Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates

non-profit organization worth noting: Partners for New Generations.