Buying a Home is 35% Less Expensive than Renting!

    Buy-or-Rent-2-Houses-KCM

    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 throughout the 100 largest metro areas in the United States.

    The updated numbers actually show that the range is from an average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide!

    The other interesting findings in the report include:

    • Interest rates have remained low and even though home prices have appreciated around the country (3.9%), they haven’t greatly outpaced rental appreciation (3.7%). “In the past year, these two trends have made homeownership even more affordable compared with renting.”
    • Some markets might 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. Rents are predicted to increasesubstantially in the next year, so lock in your housing cost with a mortgage payment now.

    Source: Keeping Current Matters / The KCM Crew 051815

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