Report: Median Mortgage Payments Equal to Median Rents

• October 14th 2011

by Mark Wellborn

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Over the past two years, UrbanTurf has re-visited the rent versus buy question from time to time, a debate that has bred a number of calculators, but ultimately a decision that is based on more than just punching numbers into a custom tool.

With the caveat that the decision to buy a home is a very personal one and that these calculators should just be used as a guide in that process, some interesting news came out earlier this week that will re-ignite the debate.

The New York Times blog Economix reported via Capital Economics (subsc. required) that, for the first time in three decades, the median monthly rental payment in the U.S. is almost the same as the median mortgage payment.

However, it is important to note that neither closing costs or down payment are factored into the equation. Furthermore, many who might want to take advantage of the mortgage-rent payment equality simply can’t.

From Capital Economics:

Even if some households want to buy, widespread negative equity and tighter credit conditions mean many can’t qualify for a mortgage. For example, lenders now require a credit score of above 700, compared with 650 previously, which has essentially shut 13 million households out of the mortgage market.

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/report_median_mortgage_payments_equal_to_median_rents/4352.