Buying Is Now 33.1% Cheaper Than Renting in the US
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.
Don’t Let Your Student Loans Delay Your Homeownership Plans
You don’t have to figure this out on your own. The best way to make a decision about your goals and next steps is to talk to the professionals.
Boomers Moving Will Be More Like a Gentle Tide Than a Tsunami
While not all baby boomers are looking to sell their homes and move – the ones who do won’t all do it at the same time.
The Best Week To List Your House Is Almost Here
The third week of April brings the best combination of housing market factors for sellers.
Is It Easier to Find a Home to Buy Now?
To help you explore the growing list of choices you have now, team up with a local real estate agent you trust.
What Every Homebuyer Should Know About Closing Costs
Your closing costs are the additional fees and payments you have to make at closing.
What Are Experts Saying About the Spring Housing Market?
If you’re planning to move soon, you might be wondering where prices and mortgage rates are headed, and how to navigate today’s market.