High rents in many U.S. markets prevented many renters from becoming homeowners in the third quarter of 2015, according to real estate website Zillow.com.
After analyzing income, rental and housing sale data, the Seattle-based company determined mortgages remain significantly more affordable than rents in many markets, but added many renters could not save mortgage down payments because of their high rents.
"In general, paying a mortgage is more affordable than renting, and has been for some time," Zillow Chief Economist Svenja Gudell said. "Unfortunately, many current renters aren't able to realize the savings that come with homeownership because as home values and rents keep rising, it's getting increasingly difficult to clear the down payment hurdle."
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