Overcoming the Housing Challenge:
How NOAH Supports Future Homeowners
In today's economic climate, buying a house has become increasingly challenging. With the average home price in the United States now around $513,100
(FRED), the traditional 20% down payment is approximately $102,620. This puts the average monthly mortgage payment at roughly $3,000, not to mention current interest rates and additional costs such as property taxes and insurance. For someone to afford this without being house-burdened, they would need an annual income exceeding $100,000. Consequently, this excludes the majority, pushing more and more people towards renting as a more feasible option.
The Renter
For renters who someday desire to purchase a house, it can be incredibly tough to save when more than 30% of your income goes toward rent. To illustrate, the average rent for a one-bedroom apartment in Greenville is around $1,305 per month not including utilities.
For someone to comfortably afford this, they would need to earn at least $52,200 annually, assuming the rent consumes no more than 30% of their income. Unfortunately, many people find themselves spending a higher percentage, leading to a cycle of living paycheck to paycheck. And as we know, at this point in time, everything is more expensive—cost of living, groceries, gas, your cup of coffee—making it even tighter financially for most individuals. With the rising costs across the board, saving for a future home has become more challenging than ever.
The Problem
This financial landscape is pushing more people towards renting with no end in sight. To make matters worse, as demand for rental properties increases, so do rent prices. In areas like Greenville, where housing is already competitive, the influx of high-income individuals who can afford expensive homes further raises the Area Median Income (AMI), thereby increasing the market rates for apartments.
This situation leaves us asking:
How can one find stability in an ever-rising rental market?
Meet NOAH: Your Guide to Affordable Living
At
NOAH, we understand these challenges and are here to guide you through them. Our mission is to provide affordable, quality housing that allows our tenants to save money and eventually transition to homeownership.
Here’s how we help:
Affordable Rent
High rent payments can make it difficult to save money, which is essential for future goals like purchasing a home or building an emergency fund. Affordable rent is more than just a number; it's a lifeline that enables tenants to live without constant financial stress.
Through our partnership with our non-profit partner, the
Southeast Affordable Housing Administration (SAHA), we are able to provide
affordable, below-market rate rents—without compromising on providing clean, safe, and comfortable living environments. This collaboration allows NOAH to offer tenants the breathing room they need to set aside money for these future goals, reducing financial strain and improving quality of life.
Flex-Pay
The traditional monthly rent payment can be a significant burden, especially when it doesn't align with your pay schedule. This mismatch can lead to financial juggling and stress.
Flex-Pay allows tenants to split their rent into
two payments that coincide with bi-weekly paychecks. This approach not only makes budgeting easier but also reduces the financial pressure of having to pay a large sum all at once. Our tenants have found that this option helps them pay their rent with more ease, allowing them to navigate their monthly expenses and budgets more effectively.
Deposite Alternatives
The upfront cost of moving into a new apartment, often requiring first and last month's rent plus a security deposit, can be a significant barrier. Our
deposit alternative program replaces the traditional security deposit with a
small renter’s insurance premium, making it more accessible for renters to move in. This initiative removes a major financial obstacle, allowing more people to find and move into homes that fit their needs without the heavy upfront cost.
Credit Building
Good credit is crucial for many aspects of financial health, including the ability to secure a mortgage. Unfortunately, many renters miss out on this opportunity because their rent payments aren't reported to credit bureaus. We
report positive rent payments, helping tenants build their credit scores. This proactive approach supports tenants in building a strong financial foundation, which is essential for future financial opportunities, including homeownership.
Your Path to Homeownership
We are not in the business of finding renters for life. Our goal is to be a helpful step on your journey toward upward mobility and homeownership. By providing affordable living options and supportive financial services, we aim to empower our tenants to save money, build credit, and eventually achieve their dream of owning a home.
NOAH understands that owning a home in this economic climate often requires creativity and hustle. Living beneath one's means is incredibly challenging with today’s prices. However, by creating a space that allows for financial margin, we provide a safe place for tenants to save, build credit, and work towards a future home. We are a stepping stone, not the destination.
Take the Next Step
If you’re feeling the strain of today’s housing market, know that NOAH is here to help. Don’t let high rent and financial stress hold you back. Contact us today to learn more about our affordable housing options and how we can support your journey to homeownership.
mission
We believe in the power of community and are committed to providing safe and comfortable living environments for everyone living in the Upstate of South Carolina, regardless of their financial circumstances.
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