𝐁𝐔𝐘𝐈𝐍𝐆 𝐀 𝐇𝐎𝐔𝐒𝐄 𝐍𝐎𝐖 𝐂𝐎𝐒𝐓𝐒 𝟒𝟖% 𝐌𝐎𝐑𝐄 𝐓𝐇𝐀𝐍 𝐑𝐄𝐍𝐓𝐈𝐍𝐆

Look at the numbers:

Buy: $2,886/month

Rent: $1,950/month

Thats a $936 monthly difference. More than $11K/yr

This isn't just about today's mortgage rates. Since October 2019 mortgage payments have increased 96%. Rents have increased 38%, and wages 37%.

For years, buying and renting cost about the same each month. That helped fuel the enormous homebuying boom of 2010–2021. Today, the equation has flipped. Renters can save nearly $1,000 a month by not buying.

That's a powerful financial incentive to sit on the sidelines.

You can't expect a surge in homebuyer demand when the economics of buying have become so much less attractive than renting.

Eventually, something has to give. Home prices, mortgage rates, incomes. Or some combination of all three.

I'm in the Home Prices corner. Mortgages are aligned with the 55 year historical norm. Not a chance wages are rising to the needed extent.

It's prices; the problem is the price.