Is Home Ownership Affordable Anymore? Why Apartments are King
Home ownership used to be something everyone looked forward to as part of the American dream. Nowadays, it seems more consumers are opting to rent apartments and use less permanent housing just to get by. Apartment rentals have become the “king” of modern dwellings, and homes have become less and less affordable for most families. But is regular housing really that expensive? Many factors go into modern housing and real estate, but here are a few making apartments the king of today’s housing purchases.
Property Taxes Are on the Rise
Property taxes are on the rise, and are one of those additional expenses that can leave you without a home if you fail to pay them. When you own a home, you worry about these fees every time you pay bills. When you rent an apartment, you don’t have to carry that burden. No, you may not own your new place, but you may not own your home if you fail to pay your property taxes.
Mortgage Processes Are Changing
Just like property taxes are increasing, mortgage rates are also on the rise. It’s getting more difficult for the average person to qualify to get into a home. Being able to stay in the home without losing it can be a gamble for some as well. A local bank may provide a client with the funds to get into a home, but interest rates may be more than a new homeowner can handle. Additionally, the type of mortgage a new homeowner gets may severely balloon after only a few years. It’s much less confusing to sign a one or two-year lease with a landlord and just pay the amount that the lease specifies. Apartment rentals are much less stressful in that aspect.
Home Maintenance Can Be Expensive
Things like pest control and regular home maintenance can cost hundreds or even thousands of dollars a month for a homeowner, but they may be included in the lease for an apartment renter. Apartments tend win in this category as well. Tenants just have to make a phone call to get help with maintenance and repair issues. The burden of these issues and expenses make homeowning seem a lot more expensive.
Home Ownership Binds
Another big reason apartments are king right now is that home ownership is binding. People sign onto a mortgage for decades. They give their lives to a home and commit themselves to staying in that same place for the rest of their lives. Sometimes people get houses before they even get a chance to explore the world. Then regret sets in. Apartment dwellers have a little bit more wiggle room than homeowners here. They can sign up for month-to-month agreements that will leave them completely free in terms of leaving or starting their lives in another location whenever they choose.
The above are just a few reasons apartments are ruling the real estate market right now. Many more exist, so you might want to consider renting if you’re thinking about moving to a new location, if you don’t want to be tied down, or if you don’t want extra expenses.
Eileen O'Shanassy is a freelance writer and blogger based out of Flagstaff, AZ. She writes on a variety of topics and loves to research and write. She enjoys baking, biking, and kayaking. Check out her Twitter @eileenoshanassy.