Contact Us
Make My Homepage

Owning A Home Is Cheaper Than Renting One According To One Study


With the economy improving and still historically low mortgage rates, home ownership is regaining its edge over renting in America’s 100 largest metropolitan areas, according to research conducted this summer. . Favorable mortgage rates, tax deductions and time horizon affect the consumer’s decision on whether to buy or rent in these metro areas.

The Summer 2012 Rent vs. Buy Report released by Trulia found with a 3.5 percent mortgage, itemized deductions at the 25 percent federal tax bracket, and a seven-year time horizon, home ownership is cheaper by a wide margin than renting in all of the 100 largest U.S. metros. However, relative affordability depends largely on location.

Despite the recent price rebound, rents continue to rise faster than prices, and mortgage rates are near record lows. Home ownership makes the most financial sense for people whose strong credit scores let them snag the lowest mortgage rate and who get the biggest benefit from deducting mortgage interest and property taxes from their income taxes.

The conventional wisdom is that renting is only cheaper if you plan to move within 3 years. But according to another study, where you live makes a big difference. Check out how long it will take to break-even in these markets:

8.3 years – San Jose
5.9 years – San Francisco
5.1 years – New York City
4.3 years – Boston
4.3 years – Los Angeles
1.7 years – Detroit


Best of KXRB

Recommended For You

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for KXRB Classic Country VIP Club quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive KXRB Classic Country VIP Club contests, events, coupons, presales, and much more delivered to you for FREE.