In its newly released analysis, realtor.com indicates that the cost of homeownership has increased more than 3X the price of renting a house.
Specifically, realtor.com says that the expense of home ownership including insurance and taxes has increased +14% from July 2017 to July 2018 to a monthly median of $1,647. The cost of renting a home has increased +4% to a monthly median of $1,287 during this same one-year period.
Owning a home was less expensive than renting a home in 35% of the nation’s counties in July 2018. This is a decrease of -9% y/y as July 2017, owning a home was less expensive than renting in 44% of the nation’s counties. More startling, owning a home was cheaper than renting a home in only 7% of the nation’s major markets with a population of +100,000.
290 counties nation-wide including Indianapolis, the Bronx, Columbia SC, and Ohio’s Kansas City and Canton are now considered to be “rent territory,” according to realtor.com.
Here are counties where buying is more cost effective than renting:
- Clayton County, GA (Jonesboro and College Park
- Monthly cost to buy – $699
- Monthly cost to rent – $1,236
- Baltimore & Towson MD
- Monthly cost to buy – $1,097
- Monthly cost to rent $1,475
- Detroit MI
- Monthly cost to buy – $695
- Monthly cost to rent – $1,040
- Fayetteville NC
- Monthly cost to buy – $864
- Monthly cost to rent – $1,012
- Madison County MO (outside of St. Louis)
- Monthly cost to buy – $832
- Monthly cost to rent – $1,019
