Jago Times "English Edition" Best Online Newspaper
Related Articles
HOUSTON, Texas (KTRK) — The concept of owning a home has long been ingrained in the idea of the “American Dream.” But with soaring home prices and interest rates, some may wonder if this dream is still attainable.
“I’m always on Zillow, looking to see what I can afford,” said prospective homeowner Chantel McKinney.
As of February 2024, the average home price in the greater Houston area stands at $391,080, making homeownership out of reach for many.
Approximately 60% of Houston residents are renters, leading some to question whether owning a home is still a worthwhile goal.
“As a millennial, the traditional American dream of homeownership seems to be fading for us,” McKinney remarked.
McKinney is diligently saving in hopes of one day being able to afford a home, a strategy endorsed by Sarah Mizell, a financial advisor with Cove Wealth Management.
“Many renters aspire to buy a home, but feeling stuck in the rental market can be frustrating. Rushing into a home purchase without careful consideration won’t necessarily alleviate that feeling of being stuck,” Mizell advised.
Renting offers flexibility in terms of relocation and absolves tenants of responsibility for property maintenance and repairs.
If you’re contemplating the rent-versus-buy dilemma, Mizell recommends asking yourself the following questions:
– How much can you afford to spend on a home?
– How much have you saved for a down payment?
– How long do you plan to reside in the home?
Housing expenses should ideally consume around 25% of your income, encompassing mortgage payments, taxes, insurance, HOA fees, and a portion set aside annually for maintenance.
Based on the average home price in Houston, which nears $400,000, annual housing costs amount to approximately $46,000, necessitating a household income of around $183,000.
This figure assumes substantial upfront expenses for down payments and closing costs.
Furthermore, consider the duration of your stay in the property. If it’s less than three to five years, renting may be a more prudent option.
For those aspiring to homeownership but lacking sufficient funds, Mizell suggests incremental adjustments to your budget over time.
“Take small steps each month to align your finances with your homeownership goals,” Mizell advised, emphasizing the importance of budgeting and making financial decisions that align with your family’s needs, irrespective of societal expectations.