Buying is Less Expensive Than Renting by 38%!

Interesting data for doctors thinking of moving to Utah.  Trulia released their Rent vs. Buy Report last week. The report explained that homeownership remains cheaper than renting in all of the 100 largest metro areas by an average of 38%!

According to their interactive map, it is 36% cheaper to buy in the Salt Lake metro area. That is quite a savings!

The other interesting findings in the report include:

• Even though prices increased sharply in many markets over the past year, low mortgage rates have kept homeownership from becoming more expensive than renting.
• Some markets might tip in favor of renting this year as prices continue to rise faster than rents and if – as most economists expect – mortgage rates rise, due both to the strengthening economy and Fed tapering.
• 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 now makes sense. You can lock in a mortgage payment before home prices and doctor mortgage rates rise as experts expect they will. If you rent, your housing expense will only continue to increase.

Thanks to KCM blog for the information in this post.