According to a study by Realty Trac, 66% of housing markets in the United States provide cheaper monthly payments when buying a home compared to renting a home. Coupled with the fact that buying provides additional benefits that renting does not, if the two are even close, buying will be a better financial decision. Having rent actually cost more makes it a no brainer for anyone who has a down payment and qualifies for a loan to buy a home rather than rent a home.
The study looked at 285 counties in the United States. Of the counties surveyed, 188 of them reported higher rent rates than mortgage rates. Not only that, the study included insurance and property tax payments on the “buy side,” yet renting still remains the more expensive across the US.
The study based their findings on the percent of total wage a person used to either rent or pay off their mortgage. Renters used 29.96% of their income, while buyers used 29% while still building equity in their home. The study also found that 13 counties that were cheaper to rent in 2014, had shifted over to cheaper to buy in 2015.
Hart Real Estate Solutions