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) 919-5400
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

The Las Vegas Guide for Entertainment and Events and Dining and Deals -- January 19th, 2018

...

Strip Condo Only $125k!

Didn’t think you could afford Las Vegas real estate? Now you can own a condo right on Las Vegas Boulevard for only $125k! Sneak preview - own your piece of the fabulous Las Vegas Strip for a fraction of the usual cost. Located right between the between the beautiful Bellagio and the vibrant MGM City Center in the hea...

February is Best for Housing Bargains

Typically winter months have a higher number of housing bargains due to stressful weather conditions and lack of competition, with February coming out on top as the month with the most housing deals. In fact, a recent study by Attom Data Solutions looked at the sales of 50 million homes from 2000 through 2016 and...

Here are the top six myths about online property shopping -- busted

Here are the top six myths about online property shopping -- busted As real estate agents, we’ve all been on the receiving end of internet leads. Whether they be for one of our own listings or for a property in a ZIP code or territory that we are paying for, engaging, working with and converting these leads...

Finding Homes for Sale in the Best Las Vegas School Zones

Spring is upon us, and families all across the country are once again gearing up to make a move at the end of the school year. For those relocating from out of state, it can be hard to determine which schools are the BEST Las Vegas schools for their kids from a such a distance. Fortunately, the Clark County School Dis...

Leave a Comment

Have a Question?

Contact Us

Follow Us