Buying a Home Less Expensive than Renting – by 38%!

House in HandsTrulia released their Rent vs. Buy Report last week. The report explained that homeownership remains cheaper than renting in all of the 100 largest metro areas by an average of 38%!

The other interesting findings in the report include:

  • Even though prices increased sharply in many markets over the past year, low mortgage rates have kept homeownership from becoming more expensive than renting.
  • Some markets might tip in favor of renting this year as prices continue to rise faster than rents and if – as most economists expect – mortgage rates rise, due both to the strengthening economy and Fed tapering.
  • 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.

Buying a home now makes sense. You can lock in a mortgage payment before home prices and mortgage rates rise as experts expect they will. If you rent, your housing expense will only continue to increase.



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One Response to “Buying a Home Less Expensive than Renting – by 38%!”

  1. Zach March 18, 2014 at 5:29 pm # Reply

    You also have to consider how long you will be living in the home you buy. Is it the last home that you'll ever buy or are you only living in the home for the next 5 years due to your job? If the appreciation does not keep up with rent rates then the best choice would be to find a nice place to rent.

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