Monday, August 8, 2016 / by Nicole Solari
Is it a better deal for you to rent or buy a home? That may depend on the state you live in.
It’s cheaper to rent a home versus buying one in just eight states in America, according to an analysis of monthly costs released Monday by GoBankingRates.com. Those states, Hawaii, Montana, Utah, Idaho, Colorado, Wyoming, Delaware and Oregon, are joined by the District of Columbia. The analysis compared the monthly cost to rent the median-priced single-family home in each state with the monthly cost of owning that same home. The latter expense includes mortgage payments (assuming a 20% down payment and a 30-year fixed loan), property taxes and insurance.
This comes at a time when rents have been rising rapidly, explains Kristen Bonner, lead researcher on the study. In 2015, apartment rents increased faster than they had at any time since 2007. And while they have fallen slightly this year, according to an analysis by Trulia released in June, the real-estate site notes that “relative to historical pricing, rents are still very high.”
Of course, home prices have also been rising — a little over 5% in the past year, according to data from the S&P/Case-Shiller 20-City Composite Index. But at the same time, mortgage rates have remained very low, which helps keep home-ownership costs lower for buyers. The average 30-year fixed mortgage averaged 3.43 percent for the week ending Aug. 4, down from 3.48 percent the previous week. A year ago, mortgage rates stood at 3.91 percent.
Solano County market is HOT right now!!!