Atlanta’s renters are more confident in the housing market, with more than 130,000 who plan to buy a home this year, according to the Zillow Housing Confidence Index (ZHCI).
According to the Seattle-based company (NASDAQ: Z), in January, Atlanta’s Zillow Housing Confidence Index hit 66.5 (measured in points on a 0-100 scale) — up 4 percent from Janurary 2014.
Renter confidence jumped 4.6 percent in the same period.
More than 12 percent of current renters nationwide – roughly 5.2 million – said they plan to buy in the next year — an almost 25 percent jump from the same time last year.
Thanks to historically low mortgage interest rates and home values below peak levels, buyers can expect to spend about 15 percent of their monthly income on a mortgage payment, compared to 22 percent historically, according to Zillow research. Typical renters should expect to pay 30 percent of their income to rent, compared to 25 percent a generation ago.
“As home affordability continues to look great and rental affordability looks abysmal, many current renters clearly seem to be re-thinking their attitudes toward homeownership, and are expressing more confidence in the overall housing market as a result,” Zillow Chief Economist Stan Humphries said in a statement. “But while this confidence is heartening, it’s important to inject a note of reality here: Not all renters who want to buy this year will be successful. Saving a down payment, qualifying for a mortgage and finding an affordable home to buy all remain formidable challenges for many.”
By: Phil W. Hudson at Atlanta Business Journal