Is Buying Cheaper than Renting?

According to RealtyTrac buying will continue to be cheaper than renting in most of the US housing markets. They compared rent and wage growth in 504 counties. The analysis showed that the rent prices are rising faster than wages. The rents for 3 bedroom homes were examined and showed that, in the second quarter of 2015, average weekly wages went up 2.6% whereas rent increased 3.5%. This means that a family will have to spend around 37% of their household income on rent.

Here are some markets with the highest rents: South and North Carolina, Louisiana, Montana counties, as well as some counties in California and Texas. Some of the more affordable markets are some counties in Tennessee, Maryland, New York, and Oregon.

Due to the low interest rates and high rent prices, it is believed that now is the best time to buy. Also, there are additional benefits to being a homeowner such as equity and tax deductions. Despite that, some younger people are still very reserved when it comes to buying, mostly it’s because of the down payments, not all can afford or are willing to give it away at once.

Before you decide to buy, ask your agent and financial planner all the questions you have and evaluate your financial capabilities. Make sure you are ready to buy!


Flickr Creative Commons: Joel Telling (CC BY-SA 2.0)
All photos used under this license.