Curious to know about buying a home vs renting? Here’s the answer!
That’s right — according to a recent study from Zillow, in 22 of the 50 largest metro areas, monthly mortgage payments are now lower than rent payments (see chart below):
Improved Affordability for Homebuyers
As mortgage rates have eased off their recent peak, home prices have moderated, and inventory has ticked up, affordability has improved significantly.
When you add all of that up. It’s getting less expensive to buy a home than to rent one in many parts of the country.
This is a big deal if you’ve been renting for a while now. But if you don’t see your city on this list, don’t sweat it.
Things are moving fast, and your area might be joining these top metros soon.
You see, talking with a local real estate agent about what’s happening in your market before this happens in your ideal neighborhood could change the game for you.
Experts inform you, showing that what once seemed out of reach is likely more affordable than you think. Now, while this study compares monthly rent to principal and interest on a mortgage payment (not the whole monthly payment), let’s think through this.
As Zillow notes, what you can’t ignore when you buy a home. Things like taxes, insurance, utilities, and maintenance should also be factored into your budget and your monthly payment.
But remember – renters pay extra fees too, like renters’ insurance, utilities, parking, and more. And while doing the math may feel like a drag, this equation could be a much more exciting one to work through today.
So, grab your calculator and your agent. It may be time to determine – if you’re in a spot to afford what you couldn’t just a few months ago.
As Orphe Divounguy, Senior Economist at Zillow, says:
“… for those who can make it work, homeownership may come with lower monthly costs and the ability to build long-term wealth in the form of home equity — something you lose out on as a renter. With mortgage rates dropping, it’s a great time to see how your affordability has changed and if it makes more sense to buy than rent.”
Whether you live in a budget-friendly metro or another area, a real estate agent can guide you best.
With mortgage rates coming down and more homes hitting the market. You’ll want to be ready to jump back into your search – before everyone else does.
Experts Insights on Buying a Home vs Renting
If you’re tired of renting and ready to explore homeownership. It’s time to see what it takes to buy a home. With the market shifting, let’s do the math together and determine if buying makes sense for you now or soon.
Understanding the pros and cons of buying a home vs renting can help guide your decision-making process.
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