The Blog ofMelissa Erickson

Buying a Home is 35% Less Expensive than Renting!

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 throughout the 100 largest metro areas in the United States.

The updated numbers actually show that the range is from an average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide!

The other interesting findings in the report include:

  • Interest rates have remained low and even though home prices have appreciated around the country (3.9%), they haven’t greatly outpaced rental appreciation (3.7%). “In the past year, these two trends have made homeownership even more affordable compared with renting.”
  • Some markets might tip in favor of renting if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy.
  • Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989.

Bottom Line

Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, so lock in your housing cost with a mortgage payment now.

The Next Step

This is a great time to buy! Take advantage of low interest rates, lock in your housing costs, and build your own net worth. Buying now could lead to substantial savings

Want to talk more and take that next step towards homeownership?

Call or email me now to see how I can make your dreams a reality!

More articles for buyers…

Don’t Get Caught in the ‘Renter’s Trap’

Want to pay your own mortgage or your landlord’s?

Thinking of Buying? What are you waiting for?