There are 11 US states (and DC) where it is currently more affordable to rent a home than to buy one
There are 11 US states (and DC) where it is currently more affordable to rent a home than to buy one.
Washington DC, Arizona and Nevada are among those identified in a coast-to-coast analysis of housing markets by GoBankingRates.com using estimated rental price for all homes, median home price, and mortgage cost data from Zillow and Trulia.
Monthly costs include taxes and insurance and were based on a 30-year mortgage with a 20% downpayment.
In Arizona, monthly rent would cost $1,273 while a mortgage would cost $1,326; In Colorado, renters would pay $1,807 while homeowners would pay $1,918; and in Washington DC, rent would be $2,632 against mortgage and associated homeownership costs of $2,718.
The other states were renting is more affordable are: Hawaii, Idaho, Montana, Nevada, North Carolina, Oregon, Utah, and Wyoming. Among those, the difference is highest in Hawaii, where a renter would pay $2,433 with a homeowner paying almost $500 a month more ($2,916).
In the other 11 states found to have higher homeownership costs, the difference is generally around $100 or less (in Wyoming it’s just $8 a month), which may prove to be less of a deal breaker when considering the benefits of homeownership (including the likelihood of building equity) compared to renting.
Washington DC, Arizona and Nevada are among those identified in a coast-to-coast analysis of housing markets by GoBankingRates.com using estimated rental price for all homes, median home price, and mortgage cost data from Zillow and Trulia.
Monthly costs include taxes and insurance and were based on a 30-year mortgage with a 20% downpayment.
In Arizona, monthly rent would cost $1,273 while a mortgage would cost $1,326; In Colorado, renters would pay $1,807 while homeowners would pay $1,918; and in Washington DC, rent would be $2,632 against mortgage and associated homeownership costs of $2,718.
The other states were renting is more affordable are: Hawaii, Idaho, Montana, Nevada, North Carolina, Oregon, Utah, and Wyoming. Among those, the difference is highest in Hawaii, where a renter would pay $2,433 with a homeowner paying almost $500 a month more ($2,916).
In the other 11 states found to have higher homeownership costs, the difference is generally around $100 or less (in Wyoming it’s just $8 a month), which may prove to be less of a deal breaker when considering the benefits of homeownership (including the likelihood of building equity) compared to renting.
