Trulia, the mobile, online real estate resource, recently made public a study it did in 2016 comparing the cost of owning and renting in the nation’s major metro areas.
Some of the Trulia results are surprising…
1. Buying a home in Detroit and West Palm Beach will save homeowners +52% compared to renting in these cities.
2. Buying a home in Knoxville, Memphis, Philadelphia and Birmingham will save homeowners +50% compared to renting in these cities.
Trulia’s study piggybacks a similar owning vs. renting study done in 2015 by SmartAsset. The assumptions SmartAsset made for that study included an annual salary of $100,000, a mortgage rate of 4.5%, closing costs of $2,000 and a 20% down payment on the home.
SmartAsset results are less surprising because most real estate professionals and consumers alike predict that housing costs are lower in the southern and midwestern parts of the country.
10. Omaha, Nebraska with
average mortgage payment of $585
average rent of $1,255
average home price of $250,000
years to break even – 1.63
9. New Orleans, Louisiana with
average mortgage payment of $650
average rent of $1,300
average home price of $235,000
years to break even – 1.59
8. Baton Rouge, Louisiana with
average mortgage payment of $570
average rent of $1,130
average home price of $216,000
years to break even – 1.58
7. Cincinnati, Ohio with
average mortgage payment of $550
average rent of $1,170
average price of home of $221,000
years to break even- 1.5
6. Columbia, South Carolina with
average mortgage payment of $460
average rent of $1,200
average home price of $190,000
years to break even – 1.48
5. Gary Indiana with
average mortgage payment of $560
average rent of $1,150
average price of home of $205,000
years to break even – 1.3
4. Tulsa, Oklahoma with
average mortgage payment of $450
average rent of $1,100
average price of home of $175,000
years to break even – 1.34
3. Greenville, South Carolina with
average mortgage payment of $490
average rent of $1,000
average price of home of $175,000
years to break even – 1.35
2. Louisville, Kentucky with
average mortgage payment of $575
average rent of $1,100
average price of home of $226,000
years to break even – 1.3
1. Little Rock, Arkansas with
average mortgage payment of $500
average rent of $1,150
average price of home of $198,000
years to break even – 1.28
