Get free access to our world class MLS search tools, save your favorite listings, create saved searches & much more!

Is renting really cheaper than owning a home?

Posted by Mastura Zaini-Roberts on Thursday, May 4th, 2017 at 10:37am.


The responsibility of owning a home can be intimidating for people who’ve only rented in the past, but new data from Zillow suggests renting can actually cost more.

Zillow’s analysis found out that sans increasing monthly housing costs, a typical renter can buy a home almost 50% more expensive than the median valued home and still get to keep the same amount of monthly housing budget.

The median US home value is $196,500, while the median rent in the country is $1,416 per month – an amount enough to pay for monthly housing expenses needed to own a $289,505 home.

“The decision between buying and renting is a financial trade-off between saving more each month on a mortgage payment versus spending more on rent but taking advantage of the location and lifestyle amenities urban renting often offers,” said Zillow Chief Economist Dr. Svenja Gudell. “Recent slowdowns in rent growth may take some of the edge off for renters saving to become homeowners. This is good news, since saving a down payment, qualifying for a loan and finding a home available at a manageable price remain hurdles for millions of aspiring buyers."

Renters in Cleveland can afford a $174,194 home while retaining monthly housing costs, which is representative of more than 80% of homes on the market now, according to Zillow.

On the other hand, San Francisco is one of the only cities where monthly rental payment does not cost more than owning a median valued home.

Here are 15 cities and their rent-versus-owning ratio from Zillow:

rentVSown

by Anna Sobrevinas
http://www.mpamag.com/news/is-renting-really-cheaper-than-owning-a-home-66727.aspx

 

Mastura Roberts
(702) 710-3330
offers@greatlasvegashomes.com

Team Leader, The Tonnesen Team
Berkshire Hathaway HomeServices, Nevada
3185 St Rose Pkwy #100 Henderson, NV 89052

With over 30 years of experience helping families call Las Vegas "home!"

Related Blog Posts

Las Vegas Market Report -- December 2016

  There were 3,340Single Family; Condos & Town-homes closed transactions in December 2016. That’s up by 224 closed transactions compared to November 2016.  December 2016 #’s- Resale 2,972 -89% Short Sales 162 -4.8% REO 206-6.2% No...

August 2017 Las Vegas Market Report -- Important Stats and Trends

  Through July 2017, the Southern Nevada resale housing market continued to trend in a positive direction.   Prices edged up further (+10.2 percent), closing volumes jumped from the prior year (+10.8 percent) and effective availability remained limited (1.8 months).     The overall condomi...

The New Gold Standard: 10 U.S. Housing Markets That Will Rule 2018 -- Las Vegas is #1

What are the hot markets where you can still afford to buy? Which are ones where home prices are almost certain to appreciate? Which ones have burgeoning economies and lots of job growth? Which are the ones where you actually want to live? To determine our predictions for the best real estate marke...

Lenders expected to ease credit standards

Lenders are concerned over general economic conditions, and they are easing their credit standards to cope with the anticipated slowdown in market demand. Fannie Mae said in an outlook report that more lenders expect to implement less stringent standards in the next three months for GSE eligible, non-GSE eligible...

About to Buy a House? Put Your Credit on Lockdown

Buying a house can be both an exciting and simultaneously stressful experience. One reason the home buying process tends to be so stressful for many consumers — besides the fact that it’s probably the biggest purchase you’ll ever make — is the rigorous qualification process involved in gett...

Leave a Comment

Have a Question?

Contact Us

Follow Us