Please wait as we prepare your PDF file ....

Mission Chronicle Blog

Search Blog

our goal is to help you stay informed by providing timely and interesting articles.

Rent or buy? Top cities for owning, renting and sharing

10/17/2017

Download PDF

In today’s market, renters and buyers often find themselves in the same boat, wading through issues of availability and affordability in their respective markets. This uncertain real estate environment leads to the question renters inevitably find themselves asking: “Is it financially smart to jump into homeownership, or should I stay where I am?”

Trulia tackles this question in its latest Rent vs. Buy report, which determines the breakeven horizon for the nation’s 100 largest metro areas.

In the report, Trulia assumes renters are weighing two options: 1) paying full rent for a typical housing unit, or 2) buying an average priced home with a 30-year fixed rate loan and 20 percent down payment.

For this version of the report, Trulia Senior Economist Cheryl Young threw in an extra factor — the presence of roommates; according to a recent Trulia report, more than 20 percent of millennials live with a roommate, which represents a 115-year high.

Young says although the standard rent versus buy analysis reveals buying is cheaper than renting in all of the nation’s 100 largest metros, that changes when roommates are thrown into the mix.

3 essential tools that will 10X your real estate marketing Smart landing pages, a synchronized database and automation generate results READ MORE

If you live in one of the uber-expensive coastal cities of California and Washington state, then staying a renter will be the best choice for you. In San Jose, Calif., renting is 21.9 percent cheaper than buying a median-priced home of $649,929.

If a renter still wanted to buy, it would take two years before buying would be cheaper than renting — but only if a renter has a 20 percent down payment of $129,985. If a buyer has the average down payment of 6 percent ($38,995) it would take 3 years before buying becomes cheaper than renting.

On the other hand, there are a number of markets across the Midwest and South where homeownership would be advantageous for renters.

For example, in Detroit, Mich., a median priced starter home costs $16,463 — the lowest median home sales price in the nation. At this rate, even if a renter only had $1 to offer as a down payment, buying will always be cheaper than renting.

There’s a catch to markets like these where homebuying is cheaper than renting: potential buyers will have to duke it out for cheap listings in the midst of an inventory shortage.

According to Trulia’s Price and Inventory Watch, starter home inventory has declined 20.4 percent year-over-year nationwide, which means buyers will have to shell out a little more dough to get their dream home.

Email Marian McPherson.

Source: click here

Read More

INSPIRED, INTELLIGENT, INSIGHTFULL

STAY INFORMED WITH TIMELY AND INTERESTING ARTICLES FROM OUR BLOG, MISSION CHRONICLE. OUR ASPIRATION IS TO PROVIDE REALTORS AND OTHER REAL ESTATE INDUSTRY PROFESSIONALS WITH EXCEPTIONAL RESOURCES AND SHARE OUR KNOWLEDGE TO PROPEL YOU TO YOUR GOALS.

  • Realable puts a unique spin on virtual tours

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Navigating the long-term decentralizing of work (part 2 of 2)

    As interest in urban condos fluctuates and suburban mansions see multiple offers, the shift to decen...

  • Growth-oriented Keap hits most of the CRM high notes

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • What the decentralizing of work means for your market (part 1 of 2)

    Successful professionals in business and finance are some of the leading buyers and sellers of luxur...

  • Part Instagram, part Pinterest, property search gets social with Rila

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Where do buyers want to retreat to this year?

    For luxury real estate buyers, the search has begun for homes where the nearest neighbors are large ...

  • Manage leads, listings and loans with Townify

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • 3 trending outdoor amenities buyers are looking for

    Easy access to the conveniences consumers once enjoyed outside their homes — from spas to gyms to ...

  • OpenFrame brings new twists to its virtual home tour app

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • When a second home becomes a first home: helping buyers make the switch

    For many luxury buyers, a dream home is within reach — in fact, they might already own one. As hom...

October 2020
Mon Tue Wed Thu Fri Sat Sun
 1234
567891011
12131415161718
19202122232425
262728293031  

  • Polls

    What information you are looking for?

    View Results

    Loading ... Loading ...
  • Last month Results

    How Is My Site?

    • Good (100%, 3 Votes)
    • Excellent (0%, 0 Votes)
    • Bad (0%, 0 Votes)
    • Can Be Improved (0%, 0 Votes)
    • No Comments (0%, 0 Votes)

    Total Voters: 3

    Vote

    Loading ... Loading ...