Soaring rent prices across country resulted in U.S. renters paying more than ever in 2017, including in San Diego. Cumulatively, tenants paid $485.6 billion in 2017, up nearly $5 billion from 2016. This latest information comes from Zillow.
Rents increasing at a faster pace than wages have proven to be burdensome with reports of renters in San Diego allocating nearly half their monthly income to housing. Coupled with rising home prices, would-be buyers, particularly those on entry-level salaries, are struggling to save and transition to ownership.
In the greater San Diego area, renters shelled out $9.6 billion, 4.3 percent more than 2016.
FHA loans, which allow down-payments as little as 3.5 percent, along with historically low mortgage rates can provide alternatives for those who are burdened by rent. Conforming no-point 30-year fixed mortgage rates are averaging 4 percent while 15-year rates are near 3.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.