Is Buying a Home Cheaper Than Renting?

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Is Buying a Home Cheaper Than Renting?Check out this article by Savvy Sugar to find out whether it makes more sense for you to buy or rent. 

Good news for prospective home buyers: The housing market crash caused an increase in demand for rentals and a drop in housing prices, which makes it cheaper now to buy rather than rent in many U.S. cities, according to data compiled by Trulia, a residential real estate website. In fact, Trulia found it was cheaper to buy than rent in 74% of the 50 biggest cities in July.

Here are five cities where it is more affordable to rent:

  • New York, NY
  • Fort Worth, TX
  • Omaha, NE
  • Seattle, WA
  • San Francisco, CA

And five cities where it is more affordable to buy:

  • Las Vegas, NV
  • Detroit, MI
  • Fresno, CA
  • Mesa, AZ
  • Arlington, TX

Of course, it only makes sense to buy if you’re looking to stay in a place for longer than seven years, if you can get a loan with a good rate, and if you have enough cash on hand to pay for it as well as a savings cushion if an emergency pops up.

To read this post in its original form, head over to Savvy Sugar

  • http://mischievouskitty.blogspot.com Stephanie

    This is definitely true in my town.  My husband and I bought our house 2 1/2 years ago, and our mortgage payment is less than $1200/month - that includes taxes and insurance.  My brother-in-law and his friend recently looked into renting a similar house in our neighborhood (similar square footage, same bedrooms/bathrooms, similar acreage), and the landlord wanted $1400/month!  Even when you factor in the maintenance costs, in the long run it was cheaper for us to buy.

  • http://www.mangomoney.com Mango Money

    Wow, good news for home buyers. Apparently mortgage rates are the lowest they’ve been in decades right now. The only problem is, people still can’t really afford to buy, so all of those cheap, cheap houses aren’t selling. Rather than get in over your head, there are some basic questions you need to ask yourself before you commit to a house. I work at Mango Money’s blog and we have a great infographic post to “guide” you through these questions. It’s fun and might really help you out if you’re considering buying a home! http://www.mangomoney.com/blog/money/to-rent-or-to-buy-8-questions-you-should-ask-yourself

  • Guest

    Good information.  Nebraska is abbreviated NE though…