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Buying is Currently 37.7% Cheaper Than Renting in the US

Christina Munkberg

Christina Munkberg Bianca is the Broker, team leader, and top producer for the Munkberg Bianca Group, a Baldwin Park, Orlando based residential real e...

Christina Munkberg Bianca is the Broker, team leader, and top producer for the Munkberg Bianca Group, a Baldwin Park, Orlando based residential real e...

Feb 8 2 minutes read

Trulia's latest results from the Rent vs. Buy Report reveal that homeownership remains cheaper than renting for a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States of America.

The numbers actually reveal that the range is an average of 17.4% less expensive in Honolulu, HI, to all the way up to 53.2% less expensive in parts of Florida such as Miami & West Palm Beach.

The report also includes these interesting findings:

  • Even though home prices have appreciated around the country, they haven't significantly outpaced rental appreciation even with interest rates remaining at historical lows.
  • Homebuyers should be more concerned about rapidly rising prices than rising interest rates.
  • Nationally, home prices have increased by 5.9% since last year compared to an increase of 3.5% for rents, but thanks to low mortgage rates keeping pressure on prices, buying a home today continues to be the best deal since 2012.
  • 8 of the 10 metros that offer the largest financial advantage of homeownership are in the South with Florida taking 3 of the top 5 spots!
  • Current mortgage rates would need to rise 145% to an average rate of 9.1% to reach a tipping point where renting is a better deal than buying. Today's current average mortgage rate is 3.7%. Rates haven't been that high since January of 1995, according to Freddie Mac.

The Bottom Line

Socially & financially, buying a home makes the most sense for most right now. If you are one of the numerous renters out there who would like to evaluate your ability to buy this year then please feel free to give us a call at 407-340-1308 to discuss more!

Schedule a Buyer's Consultation Phone Call

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