Buying Is Now 33.1% Cheaper Than Renting in the US

By
Real Estate Agent with BERKSHIRE HATHAWAY HomeServices DRE#01920732
 

Buying Is Now 33.1% Cheaper Than Renting in the US

Buying Is Now 33.1% Cheaper Than Renting in the US | MyKCM

The results of the latest Rent vs. Buy Report from Trulia show 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 3.5% less expensive in San Jose (CA), all the way up to 50.1% less expensive in Baton Rouge (LA), and 33.1% 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.
  • With rents & home values moving in tandem, shifts in the ‘rent vs. buy’ decision are largely driven by changes in mortgage interest rates.
  • Nationally, rates would have to reach 9.1%, a 128% increase over today’s average of 4.0%, for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.

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 find your dream home.

Comments (2)

Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

We learned from the housing crash that nothing is cast in stone or reliable anymore.

Jun 19, 2017 04:33 PM
Janice Zaltman
United Realty Group - Boca Raton, FL
South Florida Residential Real Estate

I believe it. Rental prices are going higher and higher each year. One client I am working with just had a $400.00 per month increase on her lease so she is saying goodbye to renting. 

Jun 19, 2017 05:18 PM

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