Buying Remains 36% Cheaper 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 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.
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.
For further information about your situation, contact me today.
Keller Williams Success Realty
Realtor, ABR,CNE,CRS,SFR,GRI,e-Pro,Web 2.0
Celeste is recognized as a 5-Star award winner from Chicago Magazine for 6 years running (2011,’12,’13,’14,’15,’16). Chicago Magazine recognizes those who have given exceptional service to their clients over the previous 12 months of activity. Only clients have the ability to give their review and opinion of who they have worked with and only those who have been given a 100% satisfaction get this recognition. Less than 2% of all Chicagoland Realtors receive the 5-Star Award. There are over 40,000 Realtors in Chicagoland.