It’s cheaper to buy a house than to rent one. In a recent study to see where your money gets you the most in housing, analysts found that it’s less expensive to own a home than to rent one in all but 8 U.S. States – and guess what, Illinois isn’t one of them.
In calculating the cost of home ownership, the analysts included the cost of a 30-year, fixed-rate mortgage with 20% down payment, the location’s property taxes, and insurance. They then compared that total with the cost to rent a median-priced, single-family home in the same area. In all but 8 States (Colorado, Delaware, Idaho, Hawaii, Oregon, Montana, Utah, and Wyoming), it costs more to rent a home than to buy one.
This is because rent has been skyrocketing. Last year, apartment rents rose higher and faster than they had at any point since 2007. Although rents have dropped slightly in 2016, they are still higher than historical pricing – and higher than the cost of ownership.
Meanwhile, the price of a single-family home has indeed risen, but only by a modest 5%. Since housing is the single largest expense most families have, mortgage rates are low, and home prices are on the rise, it’s a great time for tenants to rethink their housing budget.
Lower your cost of living and invest in your future by building a new home today. Call New Leaf Homes at 815-977-5753 or visit their website for more information.