Buying Remains 36 Cheaper Than Renting

Dated: 08/08/2016

Views: 482


Buying Remains 36% Cheaper than Renting! | 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 actually show that the range is an average of 5% less expensive in Orange County (CA) all the way up to 46% in Houston (TX), and 36% Nationwide!

A recent study by GoBankingRates looked at the cost of renting vs. owing a home at the state level and concluded that in 36 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 36% Cheaper than Renting! | MyKCM

One of the main reasons that 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 rates fell again last week to 3.43%.

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. 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.

Blog author image

John Faber

John Faber has lived in West Michigan his entire life and with strong family ties in the area, he takes his clients' needs to heart and treats them like family when helping them buy or sell a home. J....

Latest Blog Posts

If You Are Buying A Home This Year This Is Your First Step

Buying a House This Year? This Should Be Your 1st Step!In many markets across the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale.

Read More

Where The Housing Market Is Headed In 2019 INFOGRAPHIC

Some Highlights:­Interest rates are projected to increase steadily throughout 2019, but buyers will still be able to lock in a rate lower than their parents or grandparents did when they bought

Read More

How To Save Thousands Of Dollars In Interest On Your Mortgage

One of the most common loans you can get to buy a home is a 30-year fixed rate mortgage. If the thought of paying for your home over the course of 30-years seems daunting, here

Read More

What Makes A House A Home

What Makes a House a Home For You? We frequently talk about why it makes sense to buy a home financially, but more often than not the emotional reasons are the more powerful

Read More