…. If they really wanted to. In a recent analysis, Atlanta is among the top 10 cities with the highest number of renters who could actually afford homeownership. This is surprising, considering places like San Diego and San Francisco, where renting is just as high, if not higher than buying a home and making a mortgage payment.
We’ve heard that owning a home or condo in Atlanta may be drifting further out of reach for many but this is actually not true. According to the National Association of Realtors, Atlanta is among the top 10 metro areas in the entire country with the highest number of renters who could actually afford a home if they really wanted to. About 40% of renters fall into this category coming in 7th on the list, which is comprised mostly of markets in the Midwest and Southern states. Atlanta is the largest market to actually make the cut.
The existing home sales price in these regions of the Midwest and the South, continue to be lower than the North East and the West. No surprise there since places like New York and New Jersey and places along the West Coast such as Portland, Seattle and San Diego are automatically higher than those in the Midwest and the southern states. Our housing affordability and local job growth play a pivotal role in a renter’s decision on whether to buy a house or continue renting.
This study showed that recent homeownership rates have fallen slowly in the past couple of years to its lowest level since 1965, however, the top 10 metro areas are in good position to change this trend.
Other areas that made the list were Toledo Ohio coming in at 46% of renters followed by Little Rock Arkansas, Dayton Ohio and Lakeland Florida.
Currently the median sales price for Atlanta is about $275,000 with the median rent at approximately $1500 per month. That equals out to about a $1300 a month mortgage payment at 3.9% interest and 30 year term. Statistics also show that those 40% of renters have a higher credit score and a better credit rating, making them even more eligible to take out a mortgage and buy a home than ever before.
You might be surprised as to how much you can actually afford in a monthly mortgage payment and how much home you can buy. If you’re curious, contact my office today (404)580-9069. I’d love to run some numbers with you to find out if buying a home, condo or townhouse is really the best option for you right now.