Buying is Now 37.7% Cheaper Than Renting in the US

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Buying is Now 37.7% Cheaper Than Renting in the US | Latina on Real Estate

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 17.4% less expensive in Honolulu (HI), all the way up to 53.2% less expensive in Miami & West Palm Beach (FL), and 37.7% 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.
  • Home prices would have to appreciate by a range of over 23% in Honolulu (HI), up to over 45% in Ventura County (CA), to reach the tipping point of renting being less expensive than buying.
  • Nationally, rates would have to reach 9.1%, a 145% increase over today’s average of 3.7%, 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, meet with a local real estate professional who can help you find your dream home.

2 thoughts on “Buying is Now 37.7% Cheaper Than Renting in the US”

  1. Hi Jeymy,

    Someone who came to the State without proper residence document bought a owner finance property, but the interest is just too high. Do you have any good resource for these type of buyer to refi the mortgage?

    Sincerely,
    Vicki

    1. Hi Vicky,

      With I-TIN Loan Products the major con is that there’s a higher rate. Alterra is one company offering I-TIN loans (http://goalterra.com/our-products/itin-products/). I am not sure where you are located, but Alterra has offices in 10 states. If you call them, they might know who is offering these programs in your state. If that doesn’t work, send me an email with your state and I will try to help you look for a mortgage company there.

      Jeymy

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