Can You Afford to Buy a Home Where You Live? 63% of Renters Can't

There's a reason so many people are struggling to buy a home these days. Not only are property values still elevated, but mortgage rates are far from cheap. It's therefore not so shocking to learn that 63% of renters in the U.S. are priced out of homeownership in the city they live in now, according to research from HireAHelper.

If you can't afford to buy a home where you live, you may be wondering whether it makes sense to move elsewhere to be able to swing a home purchase. The answer? It depends.

How much do you love your current city?

There are certainly benefits to owning a home, like getting to build equity in a place of your own and not having to follow a landlord's rules. And so you may be inclined to ditch your current city and move to a less expensive one if that's what it takes to become a homeowner.

But there's also something to be said for liking where you live. So before you make plans to uproot your life and relocate, you may want to think about the implications of moving to a new city that's cheaper.

Owning a home might improve your quality of life to some degree. But what if moving means giving up access to the amenities you love, like being able to walk to stores and restaurants and having great public transportation nearby?

Also, moving to a new city could mean having to start over and build a whole new social network. That's not always an easy thing to do as an adult.

Plus, moving to a new city could mean having to give up your current job. It could also mean moving to an area where jobs in general aren't as easy to come by.

That's why it's important to think about how much your current city has to offer when deciding whether to relocate to make homeownership possible. At the end of the day, it may not be worth it to abandon a city you love just to purchase a home.

Renting isn't a bad thing

Many people are wired to believe that renting a home is a poor financial choice, since it means paying a landlord's mortgage rather than paying your own. But remember, the costs of homeownership extend well beyond monthly mortgage payments. There are also property taxes, maintenance, and repairs to contend with.

In fact, you may find that owning a home costs a lot more money than renting one, even if you move to a less expensive city. And pumping all of that money into a home might prevent you from meeting other financial goals you have.

This isn't to say that owning a home is a bad decision. But if homeownership is unattainable for you based on where you live currently, and you're also not eager to move, then you should know that there's nothing wrong with continuing to rent.

You never know when your financial situation might change, and it may be that in a few years from now, you'll be able to buy in your current city. But you shouldn't force yourself to pick up and move to a new city simply to be able to buy.