Your "Local" Specialist Blog

Buying A Home Is Less Expensive Than Renting One...Read Why
April 19th, 2016 12:20 PM
Buying a Home is 36% Less Expensive Than Renting Nationwide!
Buying a Home is 36% Less Expensive Than Renting Nationwide! | Keeping Current Matters
In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States. The updated numbers actually show that 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 interesting findings in the report include:

  • Interest rates have remained 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 - and rates haven't been that high since 1989.

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, meet with a local real estate professional who can help you find your dream home.

Posted by Cheryl Talbot ABR,GRI,e-PRO,MRP,SFR on April 19th, 2016 12:20 PMPost a Comment

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