Renting vs Buying a Home

Dated: 05/18/2012

Views: 3820

Fact or Fiction:  It costs more to buy than to rent your home. Well that may very well depend on where you live more then anything else.

Just today, Trulia released its latest Rent vs. Buy study, showing that in 98 percent of American cities, it's actually less expensive to buy a home than it is to rent!  Of course, the type of home you might want to buy could be more pricy than what you’d be satisfied living in as a rental, and buying a home requires an upfront chunk of dough (i.e., down payment and closing costs) that renters don’t have to come up with. 

 But the age-old would-be buyer objection that “I can’t afford to buy a home” is now frequently shattered by the reality that when you take all things into account, buying a home at today’s prices and interest rates can actually cost the same or less than renting at today’s relatively high rental costs in many areas. 

That said, if you live in San Francisco or New York City, chances are good that it does actually cost more to buy than to rent. But if you live elsewhere, it behooves you to actually do the math, factor in the massive tax advantages of homeownership and see which is truly more expensive for you.  And make sure your decision accounts for the massive opportunity costs you might incur if you don’t take advantage of today’s prices and rates to buy a home of your own and start building equity - something you can simply never do as a tenant.  

 Jim Mazzerina

Blog author image

Jim Mazzerina

ABR, CRS, E-Pro, RSPS, SFR, SRES Jim is a “Jersey boy” originally from north Jersey in the Totowa, Little Falls area. He made the move to Stafford about 30 years ago, after finding the perfect....

Latest Blog Posts

The Winery Train Of New Jersey

  Did you know you can take an historic  train ride to one of New Jerseys most beautiful Wineries.  The train takes you on an hour and a half ride along the Delaware and then a short

Read More

Free Beach Movies

Looking for something fun to do with the family? Head on over to Point Pleasant for free movies on the beach.  Friday nights at dark in the summer, popular favorites will be played, like

Read More

July 2018 LBI Real Estate Sales And Transactions On Long Beach Island NJ

July 2018 LBI Real Estate Sales and Transactions on Long Beach Island NJJuly recovered some of the market losses LBI experienced in June 2018. Sales were as follows:Single Family Homes31 Sold

Read More

Owning Is Cheaper Than Renting

The results of the latestRent vs. Buy ReportfromTrulia show that homeownership remains cheaper than renting, with a traditional 30-year fixed rate mortgage, in 98 of the 100 largest metro areas

Read More