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Report Reveals BUYING is 55% Cheaper than Rent

May 18, 2015

Trulia is an online residential real estate site for home buyers, sellers, renters and real estate professionals in the United States. It lists properties for sale and rent as well as tools and information needed to be successful in the home search process.  The well- known website has recently released its Rent vs. Buy Report with excellent news for new home buyers. In the latest report from Trulia, they explained that homeownership remains cheaper than renting in almost all areas of the United States. The updated numbers actually show that the range is from an average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide!  In the Memphis Metro area, it is now 55% cheaper to buy a new home than to rent!

The other interesting findings in the report include:

• Interest rates have remained low and even though home prices have appreciated around the country (3.9%), they haven’t greatly outpaced rental appreciation (3.7%). “In the past year, these two trends have made homeownership even more affordable compared with renting.”
• Some markets might tip in favor of renting if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy. This means that buying a new home now instead of waiting is a smart move.
• Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989. 

Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, so lock in your housing cost with a mortgage payment now by contacting a Grant Preferred Lender.