Businessweek came out a list of the 25 Toughest Cities for Renters. By that, they mean the top 25 cities that have the lowest affordability for renters. These are cities where average rents are rising, real income is stagnating or, in some cases, falling and where the supply of affordable housing has declined thus forcing rental households to pay a greater share of income than ever before.
Right now, about 26% of rental households are severely burdened with rent payments. That means that more than a quarter of rental households are paying more than half their income on rent. Furthermore, more than half of all renters were at least moderately burdened, which means that they are paying more than 30% of their income on rent.
Los Angeles is currently ranked as the 15th toughest market for renters. This does not surprise me at all. For a couple of years now, I have been seeing my first time borrowers (former renters) buying 3-4bd homes for the same or less than what they were paying for 2-3bd apartments and condos.
Here in Los Angeles county, for many renters, it has now become more for affordable to buy than it does to rent. For example, an eligible and qualified borrower could purchase this 3bd/2ba Morningside Park home with nearly 1,200 sq. ft. for a less than what they would pay to rent it.
This lovely home is not another of those run-down, dilapidated, dumpy REO that you've seen so many of. This home has been fully rehabbed with energy efficient appliances including a tankless water heating, motion sensor lighting as well as all the kitchen appliances.
There is also new hardwood and tile flooring throughout, new cabinets and granite counters (kitchen & bath) and new dual glazed windows and updated plumbing and wiring. There is even beautiful drought resistant landscaping and a state of the art irrigation system.
The best part, this home is eligible for down payment assistance from the Los Angeles Housing Department (LAHD) Neighborhood Stabilization Program (NSP). An eligible and qualified buyer could purchase this home for less than $1,600 a month (PITI) but it would cost approx. $1,700 - $1,800 a month to rent it.
For more info on how you can qualify for this program, please contact me, Donne Knudsen, at 805.2069123 or donne4loans@earthlink.net. That's what I'm here for and I would love to be able to assist you in your search for an affordable home loan.
Buying a home is one of the most important decisions someone can make. Today's real estate market can be really scary, which is why it's important to get as much info as possible before starting your search. The home buying process is not a simple process and it's because it can get really complicated and convoluted, that borrowers today need affordable loan options that are best suited for their own needs.
Photos courtesy of: businessweek RNLA giacomomacis
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