Buying is Now 33.1% Cheaper than Renting in the U.S.

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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 3.5% less expensive in San Jose (CA), all the way up to 50.1% less expensive in Baton Rouge (LA), and 33.1% 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.
  • With rents & home values moving in tandem, shifts in the ‘rent vs. buy’ decision are largely driven by changes in mortgage interest rates.
  • Nationally, rates would have to reach 9.1%, a 128% increase over today’s average of 4.0%, 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.

If you’re looking to buy, sell or lease a home; start with contacting your local Realtor® Joel Garza at Front Street Properties with Abundant Living Real Estate. Joel is a 5 star rated agent by clients with knowledge of Houston Heights, Montrose, Rice Military, River Oaks, MidTown and more. Visit FrontStreetProperties.com today and see how Joel can help with your real estate goals!