It’s the age-old question: should you rent or should you buy? Of course, based on the financial data, each market in the country can give you a different answer. A great article from realtor.com breaks down the issue:
The traditional rent versus buy argument compares the total monthly costs of buying a home with a mortgage with the corresponding rent. So that comparison is relevant when it comes to representing the housing choice trade-off in clear cost terms.
Two years ago, that head-to-head heavily favored buying, thanks to very low mortgage rates and lower prices. Back then, more than three-quarters of the counties in the country saw lower buying costs than renting costs.
With prices and rates higher now, less than half of the counties in the country see math that favors buying.
But those raw numbers hide the fact that unlike a rent check, a percentage of every monthly mortgage payment—after the lender is paid interest—goes toward the owner’s home equity. That means it’s really a forced savings plan.
Over time, less of the mortgage payments go toward interest and more go toward equity, so the savings power is enhanced further.
So, should YOU rent or buy? Use this handy online calculator to find out . . .