Why some renters aren’t in a hurry to buy homes
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The cost of homeownership isn't worth the squeeze, some renters say.
Why it matters: Home shoppers' budgets don't go as far as they did a few years ago.
Taking the plunge could mean giving up big-city living or an amenity-packed building for 30% less house, according to Sam Tenenbaum of Cushman & Wakefield, a real estate services firm.
Chicago renter Casey Moore and his wife inherited money for a down payment, but they're not rushing to buy a home.
- Spending an extra several hundred dollars monthly on a mortgage payment and HOA fees "just to own something" nearby "seems ludicrous," Moore tells Axios.
- Instead, the couple redecorated their two-bedroom apartment, which boasts a shared basketball court and pool.
The big picture: Luxury apartments across the country are offering saunas, dog spas and other perks partly to woo the wealthy and those putting off home purchases.
- Some younger people also see maintaining a house or paying for homeowners' insurance and property taxes as burdens to avoid.
- "It feels like a lot of work. I'd rather just call my landlord," San Francisco renter James Zarsadiaz told The New York Times.
As interest rates soared, home affordability tumbled for those who want their mortgage payment to match the average rent, which tops $1,800 in properties with at least 50 units, Cushman & Wakefield's research shows.
- Lower rates in recent weeks could entice more buyers.
Reality check: Communal cold plunges aside, people who rent aren't building wealth the same as older generations. (They're investing more in stocks and retirement accounts.)
- Meanwhile, homeowners are getting rich after years of rocketing house prices.
