Even with how the housing market is right now, there are some areas where renting is less expensive than being a homeowner. The increased mortgage rates and increase in home prices have really played a part in whether renting a home or buying a home is a financially fit decision.
We have mentioned it before, but we will mention it again. Right now, mortgage rates are five percent higher. It is possible that due to inflation, the mortgage rates may even increase more. If you are contemplating making the plunge and buying a home, we would suggest you do it sooner rather than later. With how things are going right now, it is highly likely that mortgage rates will increase. So get a low mortgage rate now while you can!
The cities in the United States where buying a house is less expensive than renting one are mostly found in the midwest and in the south. The city with the most significant difference is roughly $500 per month. Taken into consideration for this includes a downpayment, Home Owners Association fees or taxes, and homeowner’s insurance. This holds true for both renting and buying.
Right now, partially due to higher mortgage rates, renting a home is less expensive than purchasing one. In just this year, the number of homes that fall into this category have increased greatly. In some of the major cities, the gap is anywhere between a $750 difference and a $2,500 difference. The major cities that are a technology hotspot tend to favor renting instead of buying a home. In these areas, it is less expensive to rent. The location plays a large role in whether renting or buying is more cost effective.
Just like everything else, these circumstances can change at any time.