According to Trulia, their research team has found that buying a home is now cheaper than renting. Many people are in the situation of renting when they wish they owned their home. The good news is that although the gap between renting and buying is narrowing across the United States, Trulia is showing that homeownership is 38% cheaper than renting a home. Want to know more?
“Homeownership remains cheaper than renting nationally and in all of the 100 largest metro areas,” according to Trulia’s most recent Winter Rent vs. Buy report. How so? Well, increasing mortgage rates and home prices have allowed the gap to narrow over the past year. Given a 30-year fixed rate of 4.5%, buying is 38% cheaper than renting nationally, decreasing from 44% cheaper just one year ago.
The rent versus buy math varies by each local market with large swings depending upon each market’s dynamics.
*Graph Source: Trulia
Though home prices have increased sharply in many markets over the past year, low mortgage rates have kept homeownership from becoming more expensive than renting.
If you’re ready to stop renting and buy your own home and take advantage of low mortgage rates, contact us to get started. Our team of experts are redefining the home buying experience and are here to help you!