Categorized | Residential

Buying Has Become the More Affordable Option

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In what can be considered an unprecedented turnaround from just a few years ago, buying a home is now considered to be much more affordable than renting one.

Analysis of various recent studies have shown that in at least three quarters of the largest cities in the United States, buying is the cheaper option for families. Only in about ten percent of cities, including New York and San Francisco, is renting still the more affordable option.

The turnaround can be attributed to various factors, though the biggest ones are clearly the tremendous declines in home prices, and the interest rates. Mortgage loan rates for both 30-year fixed loans and 15-year fixed loans are at, or near record lows. Tax incentives have also been key in making buying a home the cheaper option.

As can be expected, there are a few areas in which buying is clearly the best option. For example, in Las Vegas, a two-bedroom townhouse could be purchased for as low as sixty thousand dollars, or two hundred and fifty six dollars per month with a 30-year fixed-rate mortgage loan. Detroit, and Fresno, California are also excellent options for those looking to buy.

When comparing the buy to rent ratio in New York City, however, it is certainly a much better choice to rent, as it would cost as much as thirty six times more to buy than to rent the same apartment in the city. Other cities that have more advantageous rent to buy ratio are Omaha, Seattle, and San Francisco.

Even though it may appear to be cheaper to rent in some areas, experts do say that buying a home may still be the recommended option depending upon a person’s needs and future.

 

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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