Where is it more affordable to buy than rent?
Posted on Wednesday, September 12, 2012 at 9:03:49 PM
As the economy continues to improve, more Americans are beginning to consider the idea of purchasing a home, which could be a smart financial move. According to the latest research from real estate group Zillow, there are metros in the United States where it may be smarter to buy than rent.
Zillow's results factored in median home prices for a metro, including the down payment and transaction costs, mortgage payments, property taxes, maintenance costs and tax deductions and compared them to the average costs associated with renting.
In cities such as New York City, Los Angeles and San Francisco, it took an average of four to five years for the costs of renting to match those of buying a home. However, in metros such as Chicago, Dallas and Philadelphia, it two and half to three years for rent prices and home ownership costs to equal each other. As a result, residents in these areas may want to consider applying for residential financing and purchase a property, instead of wasting their money on rent checks.