Buying Now Is 20%+ Cheaper Than Renting
The most recent findings in the Rent vs Buy Report from Trulia report that owning a home is still cheaper than renting, with a traditional mortgage (fixed 30-year), in 98 out of the 100 largest metropolitan locations in the country.
Going back six years since this study first began, owning has been consistently less expensive than renting.
The two exception metro areas where renting is still cheaper are San Jose and San Francisco, California, where median home prices have skyrocketed to more than One Million Dollars this year. Home values in San jose have increased tweny-nine percent in the last year, while rental values have stayed the same.
For the 98 metro locations where homeownership is cheaper, 97 of these locations show a double-digit advantage when purchasing.
The following chart illustrates the 100 metro areas studied. The darker the dot, the cheaper it is to buy there. In Florida, you will see that it is 30%+ cheaper to own a home than rent.
In calculating the true cost of renting, all assumed costs were included such as one-time costs (security deposits), and compares them to the monthly expenses of homeownership (insurance, taxes and closing costs). It is also assumed that households remain in their home for seven years, make a 20% downpayment and commit to a 30-year fixed rate loan.
Owning a home provides many benefits well beyond the financial benefits. If you are one of the many renters out there wondering if you qualify to buy this year, reach out to me and let's get you started on the path to owning your dream home.
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Disclaimer:The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. John Sabia PA and Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. John Sabia PA and Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.