Survey Finds Benefits of Buying a Home Outweigh Renting

Purchasing a home is a better financial move than renting one in half of the country’s metropolitan areas because buyers will break even in two years, according Zillow. Among the 35 largest metro areas analyzed in the first quarter, Riverside had the shortest break-even horizon (less than a year), followed by Orlando (1 year), Tampa (1.1 years), and Miami-Fort Lauderdale (1.2 years). Large metros with the longest break-even horizons included the District of Columbia, (4.2 years), Boston (4 years), Phoenix (3.3 years), San Diego (3.2 years), and Minneapolis and Baltimore (both 3.1 years). “Rents keep rising, and mortgage interest rates remain very low, which is helping to skew the rent vs. buy decision toward buying for those who can afford it,” says Zillow chief economist Stan Humphries. “Many renters may ask themselves why renew a lease, when you can break even on the same home in less time in many areas.” | Read More