Buying a Home is 35% Less Expensive than Renting!

Buying a Home is 35% Less Expensive than Renting

by  on May 18, 2015


Buying a Home is 35% Less Expensive than Renting! | Keeping Current Matters
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.

Popular posts from this blog

Powder Rooms That Make a Statement

Image
Powder Rooms That Make a Statement by  Melissa Tracey  on May 18, 2015 More home owners are turning to the powder room to make a dramatic statement and packing in a lot of design into these often small spaces, according to the  2015 Houzz Bathroom Trends Study , a survey of more than 3,000 home owners about their bathroom remodeling plans. Nearly two thirds of powder rooms are less than 40 square feet, but home owners are finding they can still make these spaces attention-getting, whether with a trendy sink or flashy wallpaper. Home owners report that their powder room renovations are mostly driven by the desire to do cosmetic touches, and therefore, home owners are finding affordable, do-it-yourself upgrades to spice up the space. Most home owners say they want to upgrade their powder room because they want the design to make a bolder statement – a more popular response among home owners than for any other bathroom in the house, the survey finds. The powder...
Read more

Builders Bet on Luxe Townhomes to Win Over Young Buyers

Builders Bet on Luxe Townhomes to Win Over Young Buyers January 17, 2019 Builders across the country are betting on luxury townhomes to try to get more young adults into homeownership. Open floor plans, high ceilings, and upgraded amenities are features they hope will lure millennials to buy their first home. “When a lot of people think of townhouses, they think of these very narrow homes because the floors are stacked on top of one another,” Felix Bravo, a sales executive with Pordes Residential in Miami, told Forbes.com. He is selling townhomes up to 3,000 square feet starting at $900,000. “With the amount of space we have, they have a very open feel.” The amenities include a private rooftop terrace with a jacuzzi and outdoor kitchen. “The wow factor is how much space they have and how luxurious the interior is in terms of appliances, cabinetry, and the kitchen island,” says Bravo. “The second biggest wow factor is being able to go up to your own private roof...
Read more

5 Ways to Future-proof Your Kitchen

5 Ways to Future-proof Your Kitchen January 11, 2019 Revamping a kitchen can be a costly undertaking, with the median price of a remodeling job coming in at $60,000. So, how do you make sure the changes you make won’t look dated in a few years? HouseLogic, a home improvement website by the National Association of REALTORS®, offers ideas to future-proof your kitchen, including: Stick with white White has remained the top choice of the National Kitchen and Bath Association’s annual survey for years. “It’s a bright color that reflects light and makes even small kitchens feel larger,” notes HouseLogic, adding that white appears to be the “most marketable color” in the kitchen. Put in hardwood flooring Not having hardwood floors apparently comes with later regrets. More than half of home shoppers who purchased a home without hardwood floors say they would have paid an extra $2,080 for them, according to the National Association of REALTORS®’ Home Feature...
Read more