According to real estate website Trulia’s most recent Rent vs. Buy report, the cost of buying a home in the Phoenix Metro area is 25.9% cheaper than renting. This number is slightly less than the national average of 26.3%. The study is based on buyers making a 20% down payment on a 30-year fixed mortgage and staying in the home for seven years.
Trulia has been tracking whether it is cheaper to rent or buy a home in 100 of the largest U.S. housing markets for the past six years. In all markets–with the exceptions of San Jose, CA and San Francisco, CA this year–it has cost less to own than to rent since 2013.The 26.3% national figure is down from the high of 41.3% in 2016 owing to rising home prices and increased mortgage rates. In spite of this, the trend still indicates a significant savings in buying over renting.
The map below shows that the Phoenix Metro area has one of the higher rates of savings, particularly in the West.
If you are a renter and would like to save some money, now is a good time to think about buying a home. Consider this: unless your landlord owns the place you’re renting outright, you are already paying somebody’s mortgage–it might as well be your own.
Contact AZ Mortgage Brothers today, to see how we can help you get into the home of your dreams!