Good question, and the answer may actually surprise you!
Freddie Mac’s recent survey (April 2019) of 1,119 renters and 2,864 homeowners reveals that perception doesn’t always reflect reality when it comes to the affordability of buying a home vs renting. While the rising cost of living, including childcare and student loans remains a pressing concern, most millennials and Gen Xers would be surprised to learn that home ownership over renting might help their bottom line.
According to the study, thirty-four percent of renters spend more than one-third of their income on rent, compared to homeowners, who spent only a quarter of their income on their mortgages.
And say what you will about Baby Boomers; as homeowners they are the least likely to be struggling as only 17 percent cited spending more than a third of their income on housing verses 41 percent of renters.