Rent vs. Buy: Which is Cheaper for Your Area

Rents have gone through the roof here. No surprise for me on this map.



Interactive map here:

http://trends.truliablog.com/vis/rentvsbuy-summer2012/

Full article here:

http://trends.truliablog.com/

Exceprt:

You can save hundreds of dollars a month by buying a home instead of renting – especially if you can get today’s low mortgage rates, itemize your tax deductions and plan to live there for 7 years.

The most important housing decision that most consumers face is whether to rent or to buy. So to help them with this decision, we took a look at the key market factors affecting the cost of homeownership. First off, asking home prices have started to rebound and have risen by 2.3% year over year in August (3.8% excluding foreclosures); however, rents have risen more (4.7%). This means that prices are lower relative to rents than they were a year ago. But more importantly, mortgage rates have fallen: the best rates this summer have been around 3.5%, while last summer rates were closer to 4.5%. Based on asking prices and rents during the summer of 2012, buying is now 45% cheaper than renting in the 100 largest U.S. metros, on average – that’s a savings of $771 a month. If you plan to stay in a home for 7 years, which is the average time that Americans traditionally live in a home before moving again, it is more affordable to buy than to rent in ALL of the 100 largest metros in the U.S.

 

Renting is cheaper where I live. Houses range from $1m-$3m round these parts

 

$893/month saved, whoa.
Too bad the places here are so expensive to buy.

That's my dad's attitude with buying though.
When we first left my hometown for the city, he bought a cheaper $15,000 mobile home. We moved into the new house he built, and the trailer was sold to my aunt n uncle. The work my dad did on the mobile home (since my uncle didn't make any changes) allowed the mobile home to actually be sold for $80,000-100,000 when my aunt and uncle moved out.

I'd rather pay $1000 a month on a mortgage and sell the house when I move, than pour $1000 down the drain by living in an apartment lol.

 

My mortgage is $482 per month. I own a 3 bedroom house that's 1300 sq ft.

You cant get rent for that anywhere. It is definitely cheaper to own around here.

 

what the what!!! dayum!!

I tend to live in specific areas, when I was in Northern California the city was Pleasanton and my rent was $950 because i was grandfathered in but that was after paying $2700 a month for a 4bed house, then $1900 for a 2bed luxury condo, then $1400 for a 2bed loft. the $950 for for a one bed apartment.

Now I'm in so cal and $2200 seems to be the average for a nice 2bed. Unless i get a house for less than $500k i still think its cheaper to rent with my particular taste.

 

I live outside of NYC. Nough said

 

Renting or Buying where I live is pretty much the same so it is better to buy.

 

I think they're pretty much the same (or close to) in my area. So buying is the smarter choice....BUT, of course that's only if you have the gigantic deposit you need in order to do it. LOL

 

It's certainly cheaper to buy here. Wish we could.