Buying Remains Cheaper Than Renting in 39 States!

Reblogger Eva B. Liland Century 21 Doug Anderson
Real Estate Agent with Century 21 Doug Anderson DRE# 01790856

Sometimes we worry about buying a home is better than renting. After all, why would someone prefer to buy when it used to be so easy to rent? Today, most rentals are handled by a property management firm and you have to jump to a lot of hoops to finally be accepted as a renter. Not an easy task.

As a potential buyer, there are plenty of hoops there too but the rewards are much bigger and I am not only talking about financial rewards. The sense of pride of owning your own home is worth so much more.

Please give me a call so that I can point you in the right direction to owning your own home, I am only a phone call away (please do not text me with such an important question and no Facebook Messaging me either). I will be glad to actually set up an appointment so that we can meet in person and brainstorm your options together freely.

Buying Remains Cheaper Than Renting in 39 States!

Buying Remains Cheaper Than Renting in 39 States! | MyKCM

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 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!

A study by GoBankingRates looked at the cost of renting vs. owning a home at the state level and concluded that in 39 states, it is actually ‘a little’ or ‘a lot’ cheaper to own (represented by the two shades of blue in the map below).

Buying Remains Cheaper Than Renting in 39 States! | MyKCM

One of the main reasons owning a home has remained significantly cheaper than renting is the fact that interest rates have remained at or near historic lows. Freddie Mac reports that the current interest rate on a 30-year fixed rate mortgage is 3.91%.

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 an Omaha home makes sense socially and financially. If you are one of the many renters who would like to evaluate your ability to buy this year, let’s get together and find you your dream home.

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Rainmaker
466,205
Steffy Hristova
HomeSmart Elite Group Tempe AZ Tel: 480-966-9353 - Tempe, AZ
Tempe AZ Realtor - Your Home Close to Your Work!

Not sure what gobanking.com includes in their numbers to get to ranking of state, but Phoenix area still has options where it costs less to own and pay a mortgage than to rent. Employment is very high and a lot of job-related relocations are happening. 

Oct 17, 2017 07:30 AM #1
Rainmaker
3,356,227
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

I shared this info from Keeping Current Matters elsewhere too...great stuff!

Oct 17, 2017 07:33 AM #2
Rainmaker
201,808
Eva B. Liland Century 21 Doug Anderson
Century 21 Doug Anderson - Lancaster, CA
Glad to be of Service 661-714-1643

Steffy Hristova , not sure either. Buying is always the better choice but getting the down payment together while renting is not an easy task.

Oct 17, 2017 07:36 AM #3
Rainmaker
1,434,857
Yolanda Cordova-Gilbert
Richmond, TX

Eva,

 Wow I am surprised Texas and California came out the same. We have cousins that live there and they make good money but cannot afford to buy where they live they $6K for a tiny place a month!

Oct 17, 2017 12:10 PM #4
Rainmaker
588,694
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

This is great information to share with tenants/would be home buyers. Sure, there are reasons someone would choose to rent on a short-term basis, but I don't understand long term tenants. You're going to pay someone's mortgage; might as well be your own!

Oct 22, 2017 08:54 PM #5
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Rainmaker
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Eva B. Liland Century 21 Doug Anderson

Glad to be of Service 661-714-1643
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