Buy Vs. Rent: How Many Years Do You Need To Break Even In Phoenix?

On the fence whether to buy or rent in Phoenix? Well, why don't we put it simply this way: if you're thinking of living in the same place for three years and upwards, you might as well jump into becoming a homeowner than paying rent for that much time.

Thanks to SmartAsset's interactive buy vs. rent map which highlights the places where buying is better than renting based on the number of years you plan to stay in your home, we've now found out that Phoenix has an average of just 2.9 years to break even between purchasing and renting. This break even point is at an average home price of $219,021 with a monthly mortgage price of $837 versus an average monthly rate of $1,226. Additionally, if you're looking to live at least 5.7 years in the same home, you should strongly consider buying over renting.

SmartAsset gathered data on average rents and home prices, and compared buying to renting in every county in America based on a household earning $100,000 a year assuming a mortgage rate of 4.5%, closing costs of $2,000 and a down payment of 20%. The break even point for each county was calculated at the time in which the total costs of renting become greater than the total costs of buying. The counties with the shortest time to break even are, of course, the best places to buy.

The rising cost of rent in the Valley has pushed renters to consider buying homes, especially when they're looking to live long term than move around much. The new tax laws might have caused certain homebuyers to rethink but the changes affect more of those in expensive housing markets- especially along the coasts- than lower tax states like Arizona. Thanks to SmartAsset's break even point calculations, prospective homebuyers have another factor to consider when making a decision.

And of course, you also have The Shanna Day Team to work with you in finding the right home at the right neighborhood and price for you, especially in this time of tight inventory. So if all things considered point to you buying over renting, contact The Shanna Day team and let's start your journey towards homeownership!

Buy Vs. Rent: How Many Years Do You Need To Break Even In Phoenix?