More tenants buying first home when rent costs more

Published: Tuesday, Oct. 16 2012 10:36 a.m. MDT

With home prices down and mortgage rates at historic lows, more renters are taking a shot at homeownership.

Matt York, AP

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With home prices down and mortgage rates at historic lows, more renters are taking a shot at home ownership, according to NPR.

"It beats paying rent," Kitsy Roberts, a new homeowner in Seattle, told NPR. "You're paying for a roof over your head. But after that, you're paying into nothing."

The point at which buying a home is more of a financial advantage over renting has usually been between four and five years, while today that’s dropped down to less than three years, Stan Humphries, the chief economist for Zillow, an online resource for real estate information, told NPR.

Since rent has been increasing and home buyers can deduct interest payments from their taxes, more are considering buying a home as a viable option, according to NPR.

Other reasons people buy homes for the first time include having more space, a backyard and a sense of privacy.

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