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Buying a Home Remains 38% Less Expensive than Renting!

Thursday, November 6, 2014   /   by Matthew Freda

Buying a Home Remains 38% Less Expensive than Renting!

Buying a Home Remains 38% Less Expensive than Renting!  | Keeping Current Matters


 


In Trulia’s latest Rent vs. Buy Report, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the United States.


The updated numbers actually show that the range is from an average of 17% in Honolulu, all the way to 63% in Detroit, and 38% Nationwide! This is up from an average of only 5% cheaper in Honolulu in April.


The other interesting findings in the report include:



  • Rents have continued to increase nationally even as home price increases are starting to slow. Current low mortgage rates have kept homeownership from becoming more expensive than renting.

  • Some markets might tip in favor of renting next year if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy.



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.



Bottom Line


Buying a home makes sense. Rental costs have historically increased at a higher rate of inflation. Lock in a mortgage payment now before home prices and mortgage rates rise as experts expect they will.


 



 


Matthew

Freda

 

Freda Realty, Inc.

Longwood, FL

Freda Realty...Experience the Difference!

(407) 513-4724


 





 


 


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eXp Realty, LLC
Matthew Freda
651 W Warren Ave
Longwood, FL
407-513-4724

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