Buying is Less Expensive Than Renting
Buying a Home is 36% Less Expensive Than Renting Nationwide!
In the latest Rent vs. Buy Report from Trulia, home ownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.
The numbers show the range is an average of 5% less expensive in Orange County (CA) all the way up to 46% in Houston (TX), and 36% Nationwide!
Other findings in the Rent vs. Buy Report:
- Interest rates remain low and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation.
- Some markets may tip in favor of renting if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy.
- Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying. Rates haven’t been this high since 1989.
Real Estate Bottom Line
Buying a home makes sense socially and financially. If you are one of the many renters out there who would like to evaluate your ability to buy this year, let’s get together to discuss the best course of action to get you into your dream home!