Cheaper to BUY than it is to RENT? During the “boom” years, it was clearly cheaper to rent a dwelling than to buy one, but people bought anyway, counting on infinite appreciation. It is now, however, usually cheaper to buy than rent.
Recently Trulia, the real estate data website, compared the median list price with the median rent on two-bedroom apartments, condominiums, townhouses, lofts and co-ops listed on its website, and compared that to ownership costs including mortgage payments, property taxes and insurance. It determined that buying a home is cheaper than renting in 72% of the largest U.S. cities. The buy vs rent benefits are clearly much stronger in the high foreclosure areas like CA, AZ, NV, and FL.
We do similar rent vs buy analyses time and again for our clients. Many times even our 3.5% down FHA clients end up paying less per month, after tax benefits are accounted for, for PITI than they did for rent. And, in almost all cases our clients putting down 20%, or more, end up paying less for PITI than they did for rent.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167