A Way to Make Buying a Home In Chester County Affordable for First Time Buyers

The cost of living in Chester County is almost 20% higher than the national average. From June 1, 2023, to October 11, 2023, the median home price in Chester County was $518,750. The median household income as of 2021 according to the US Census was $109,969 for Chester County. This creates an affordability gap and makes buying a first home here a very challenging process. 

Like many areas in the country, Chester County is experiencing a housing shortage. This is especially true for affordable housing, with no end in sight. A solution will be based on increasing the housing inventory in the county. Which will take years of increased new construction. 

So what is a solution that can work now?

How about looking at a duplex or triplex as your first home? Buying a duplex or triplex provides income to offset the monthly costs of owning a home. It can bridge the gap between home cost and affordability. 

For example: a duplex in the Oxford area could be bought this year for $415,000. The payment with taxes and insurance would be about $3,793 a month. The median rent for a 2-bedroom apartment in the Oxford area is $1,338 a month. That is a monthly net mortgage payment of $2,455 a month (mortgage payment minus monthly rent received). A mortgage payment of $2,455 a month gets you a $250,000 single-family home. There aren’t too many $250,000 homes in Chester County. Buying a multi-unit home and occupying one of the units creates a solution. 

There are mortgage programs that allow you to buy 2-4 unit properties with similar terms to single-family homes. With the caveat that you occupy one of the units. Some of the programs allow you to factor in a portion of the rental income to help with qualifying for the mortgage. 

Buying a multi-unit property can be a first step to acquiring more rental properties for income as part of your financial plan. If being a landlord isn’t your thing long-term, you can just sell it and move. 

Buying a duplex or triplex can be a great way to live in Chester County affordably while creating financial flexibility. The key is understanding your current financial picture and what it will look like after purchasing a multi-unit property. Weighing the pros and cons, and understanding the risks and rewards. 

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