Buying Is Now Cheaper Than Renting in the US!
Buying is now cheaper than renting! That’s right; according to the results of the latest Rent vs. Buy Report from Trulia, it shows that homeownership remains cheaper than renting. In the six years that Trulia has conducted this study, this is the first time that it was cheaper to rent than to buy in any of the metropolitan areas in the United States. Below is a map of the 100 metros that were studied. The darker the blue dot on the metro, the cheaper it is to buy there. In order to calculate the true cost of renting vs. buying, Trulia includes all assumed renting costs, including one-time costs (like security deposits), and compares them to the monthly costs of owning a home (insurance, mortgage payments, taxes, and maintenance) including one-time costs (down payments, closing costs, sale proceeds). They also assume that households stay in their home for seven years, put down a 20% down payment, and take out a 30-year fixed rate mortgage. The full methodology is included with the study results here. Below is a chart created with the data from the last six years of the study, showing the impact of the median home price, rental price, and 30-year fixed rate interest rate used to calculate the ‘cheaper to buy’ metric.