Tuesday, November 15, 2016

CALL or TEXT 239-560-1574 or email: terencetrombetti@gmail.com

While interest rates are rising, we have put together a report that reassures potential home buyers to not fear their next investments. Currently, it is cheaper to buy than rent in all 100 of the largest U.S. metros. 

Rates would have to double to change this dynamic as our Chief Economist Ralph McLaughlin discusses in our most recent Rent vs. Buy report.  This should be great news to your blog readers especially those planning to buy a home in 2017.

Quick summary of our findings:

·       It is 37.7% cheaper to buy this year. This up just slightly compared to 37.2% last year;
·       It is over 50% cheaper to buy in Miami, Fort Lauderdale and Houston;
·       It is less than 20 % cheaper to buy in San Francisco, Honolulu and Milwaukee;
·       Homebuyers should be more concerned about rising prices than rising mortgage rates. Rates
would have to more than double to wipe out the financial advantage of buying, whereas prices
would only need to increase by 67.         

Graphics and Tables

rentvsbuy_pitchgraphic



Where Buying A Home Beats Renting
Rank
U.S. Metro
Median Home Value, Fall 2016
Median Rent, Fall 2016
Cost of Buying vs. Renting (%), Fall 2016
1
$259,527
$2,000
-53.2%
2
$241,509
$1,950
-53.2%
3
$176,513
$1,575
-52.9%
4
$217,342
$1,800
-52.9%
5
$218,090
$1,575
-52.5%
6
$158,405
$1,350
-51.7%
7
$171,302
$1,450
-51.2%
8
$122,040
$1,400
-51.0%
9
$141,176
$1,300
-50.8%
10
$124,733
$1,125
-50.6%

Where The Financial Advantage of Buying is Slimmest
Rank
U.S. Metro
Median Home Value, Fall 2016
Median Rent, Fall 2016
Cost of Buying vs. Renting (%), Fall 2016
1
$629,606
$2,500
-17.4%
2
$954,153
$3,600
-18.6%
3
$203,148
$1,300
-19.6%
4
$331,086
$2,200
-22.9%
5
$1,094,742
$4,300
-25.9%
6
$224,918
$1,525
-27.4%
7
$348,813
$1,750
-27.5%
8
$396,892
$2,400
-28.6%
9
$658,223
$3,000
-29.2%
10
$540,662
$2,600
-29.4%

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