NORTHAMPTON, Mass. (WWLP)- Buy or rent? It’s a tough decision almost all of face when looking for a home.
New research shows right now homeowners are thriving, and renters are struggling. In the current market, homeowners are enjoying benefits of growing equity and lower rates on their mortgages.
“Buying a home is probably the biggest thing you can do as far as protecting your assets later on in life”, said Brian Frew of Belchertown.
More people across the country are renting their homes. This is making it more expensive for first time home buyers and college graduates looking to buy a home.
A combination of foreclosures and a crowded job market, has raised the demand for renters and the price of homes.
Murphy’s Realtors in Northampton, told 22News why first time buyers are struggling to keep up with the rising home prices.
“They ‘re watching your debt ratio they’re watching how much money you’re putting down”, said David Murphy, Broker at Murphy’s Realtors. “When you’re a new person young starting out even though you have a good job you have some cash flow, but you don’t have the savings. ”
Many of these first time home buyers are struggling because they’re trying to pay off debt, like student loans or a car payment. Murphy told 22News most renters in Hampshire County have been making their payments, but they have been critical of the rising prices.