A recent HousingWire article shows one way low-income residents miss out, even when home prices are low:
“As rents rise and prices stagnate, homeownership is becoming even more affordable, but rising rents create a dilemma for people who can’t afford to buy yet,” says Jed Kolko, Trulia’s chief economist. “Rising rents make it harder for people to save for a down payment, which is the biggest barrier to buying a home that aspiring homeowners face.”
Homeowners are choosing, or being forced, to rent rather than buy even though the latter is cheaper in key markets Trulia reviewed.
But as they turn to renting, the influx of demand squeezes the nation’s rental supply, pushing monthly rents higher.
Homebuyer education is one way PRG helps break this cycle. Our monthly homebuyer education workshops include information on down payment assistance programs and other loan programs that lower the barriers to home ownership for low- to moderate-income families.
Our free, one-on-one counseling helps low-income renters connect with resources that will work for them, and also make plans and strategize to save for a down payment. With the right knowledge and resources, when the price of ownership is lower than renting, families are often better able to make the leap to a sustainable, affordable option rather than be caught in an upward spiral of increasing rent.