Buying a home can be a great long-term investment, but did you know it can also have immediate benefits?
RealtyTrac’s Buy-or-Rent report found that making monthly house payments on a three-bedroom property is more affordable than paying fair market rent on a three-bedroom home in 188 of the 285 counties analyzed (66%).
The Buy-or-Rent analysis compared the percentage of median household income that would be needed to pay the fair market rent on a three-bedroom property in that particular county to the percentage of median household income that would be needed to make monthly house payments — including mortgage, insurance and property taxes — on an average-priced home in that same county.
How much home can you afford? Use our calculator to find out the amount you can afford from the lender’s point of view.
Across all 285 counties analyzed, the average percentage of median household income needed to rent was 30% while the average percentage of median household income needed to buy was 29%.
Major counties where it is still cheaper to buy than to rent include Miami-Dade County, Florida (42% of income to buy), San Bernardino County, California in Inland Southern California (36%), Clark County, Nevada in the Las Vegas metro area (27%), Broward County, Florida in South Florida (35%), and Wayne County, Michigan in the Detroit metro area (23%).
Thinking about buying a house? Get a head start on the competition and start your loan application today.