"Business Insider": 7 U.S. cities where renting is cheaper than buying a house
"Business Insider": 7 U.S. cities where renting is cheaper than buying a house Although U.S. mortgage rates are at record lows and housing prices have clearly bottomed out, due to the U.S....
Although U.S. mortgage rates are at record lows and home prices have clearly bottomed out, consumers are hesitant between buying and renting as the prospects for a U.S. economic recovery remain unclear. In which cities is it cheaper to rent than buy a house?
Real estate information website Zillow has launched a new real estate economic metric?#20445;本线?#65288;Breakeven Horizon) to provide guidance to consumers. At the number of years represented by the capital preservation line, the economic benefits of choosing to buy or rent a house reach a balance. If you live in a city for more than the years indicated by the capital-guaranteed line, you will save more money by buying a house; in other words, if you live in a city for less than the years indicated by the capital-guaranteed line, you will save money by renting a house.
Zillow calculates the breakeven line for each major city in the United States, taking into account factors such as down payment, home purchase cost, mortgage payment, property taxes, maintenance costs, taxes, and rent. On this basis, Business Insider selected 7 cities where renting is more economical than buying.
San Diego, California Breakeven line: 3.6 years Price to rent ratio: 14.0 Median house price: $369,000 Median rent: $1,750
Seattle, Washington Breakeven line: 4.0 years Price to rent ratio: 13.4 Median home price: $290,000 Median rent: $1,270
Boston, Massachusetts Breakeven line: 4.3 years Price to rent ratio: 13.4 Median home price: $347,900 Median rent: $2,000
Los Angeles, California California) Breakeven line: 4.3 years Price-to-rent ratio: 14.2 Median house price: $399,000 Median rent: $1,850
New York (New York) Breakeven line: 5.1 years Price-to-rent ratio: 12.8 Median house price: $389,000 Median rent: $2,600
San Francisco, California Breakeven line: 5.9 years Price-to-rent ratio: 16.0 Median house price: $519,000 Median rent: $1,960
San Jose, California Breakeven line: 8.3 years Price-to-rent ratio: 18.9 Median home price: $590,000 Median rent: $2,050
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