Hal's Mortgage Blog

Did you know that in some cities around the country it is cheaper to rent than buy? As you can see from the map below, it depends on where you live. So, if your city isn’t on the map here’s how you can calculate the Rent vs. Buy Index.

 
If the home price is 15 times higher than the annual rent for a similar property, it is better to rent. Other factors that may affect your decision are 
    • Length of time you plan to stay in the home – less than five years may favor renting. 
    • Number of homes on the market – prices may be depressed if there are a lot of foreclosures in your neck of the woods. 
    • Availability of rentals – more people are renting now than just a few years ago decreasing the supply and increasing the demand.

Let me know how the market looks in your town or city. Is this information helpful?