BUYING A HOME IS NOW 33.1% CHEAPER THAN RENTING IN THE US

Posted by Farah Sanon on Monday, January 15th, 2018 at 12:51pm.

 

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 43.1% less expensive in Fort Myers/Cape Coral, FL; 45.7% in West Palm Beach, FL; 47% in Fort Lauderdale, FL; all the way up 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, Farah Sanon Real Estate professional can help you find your dream home Contact Me. or or call me at (239) 248-0994 today!

This article originally appeared on KeepingCurrentMatters.com, authored by Charlotte Harney.

Farah Sanon

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