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:
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
Over the past month, the Las Vegas real estate market has been literally flooded with would-be flippers, making up to 30 bids each per week. They are offering anywhere between 70 to 80 cents on the dollar on homes listed for sale around the Valley, hoping to get just one offer accepted so they can get started on th...
People don’t know what they don’t know, and what they do know is enough to create false perceptions Key Takeaways Erroneous assumptions about the business can cause a ton of confusion for the public about how the real estate process works. The real estat...
The Omaha tycoon referenced more acquisitions for the brokerage firm over the next 10 years In Warren Buffett’s 2016 investor letter released this past weekend, the folksy tycoon called out HomeServices of America (HSA) and said to expect more acquisitions. The company had $225 million in earnings las...
Based on real estate experts that Las Vegas High Rise condos market is going to explode. The most important thing before purchasing a Las Vegas high rise condo is to hire a realtor who has the expertise to assist you with your purchase process. Las Vegas offers a wide range of high-rise condo living. For...
Need a home by the end of the year? This beautiful DR Horton community in the booming southwest area of Las Vegas has immediate move-ins on brand new homes! The neighborhood includes its own private park and a community pool, and homes come standard with granite countertops and low E windows. Check out this stand...