Getting Off The Rental Rollercoaster in 2020

A few months ago, I came across a staggering statistic that made my jaw drop: According to a 2018 CNBC report, it will take about 6 ½ years for today's renter to save for a mortgage down payment.

I thought surely that statistic had changed in the last 18 months. I did a little digging online, and sure enough, that statistic is still a good one. And as I did more research, I came across another shocking statistic: A 2017 Zillow survey of 10,000 American renters found that 2/3 of them cited saving for a down payment as their largest obstacle to owning a home.  I suddenly realized that we have a new housing crisis - not like the one that started in 2008 - but one that has the potential to be as big and damaging as that one. I'm talking about a housing crunch that is being caused not only by a lack of affordable homes but also by a lack of home buyers that can scrape together the money for a down payment. 

The lack of affordable homes and inability of renters to save for a down payment has in turn caused rental rates to skyrocket in some areas. For example, in a city near us, the average rent for a 3 bedroom apartment is $2,850/month. The average mortgage payment in that same city is $2,250. No wonder it's taking renters so long to save up for a down payment! How is a person supposed to make that kind of rental payment, cover a car payment, a student loan payment and all of the other expenses that crop up every month and still have anything left over for a down payment?

After meeting with my real estate team, we decided to make it our mission to help as many renters as we can get off the rental rollercoaster and become homeowners in 2020. We then brainstormed the best way to do that and agreed that down payment assistance and 0% down programs were the best way. Our team has immersed themselves in learning everything they can about the available programs, and every week I am surprised by how versatile these programs are and how many people qualify for them. So over the next few months, my blog is going to focus exclusively on these programs. If you are already a homeowner, please don't assume that these blog posts won't apply to you. If you have a family member, friend or co-worker who is currently renting, then be kind enough to share my posts with them. We all have an obligation to help people in our community get off of the rental rollercoaster.