Rent vs. Buy Question an Easier One to Answer Today
Is it more affordable to buy a home or rent an apartment? That’s long been a question on the mind of consumers.
Today, though, the answer in the majority of U.S. cities? Buying a home is the financially smart move.
REALTOR® Magazine recently reported on the results from the latest Florida Atlantic University and Florida International University Buy vs. Rent Index. According to the index, rising apartment rents across the country are making it more affordable to buy a home in most metropolitan areas in the United States.
According to the story, 15 of the 23 cities in the Buy vs. Rent Index rank in the “buy” category. Another five cities analyzed in the report are only marginally listed in the “rent” category, according to the story.
These results shouldn’t be surprising to anyone living in Chicago. Apartment rents in the city continue to rise. It’s not easy for renters here to find modern but affordable apartment units.
It’s true that the prices of Chicago condominiums and single-family homes have continued to rise, too. But housing prices, despite being on the rise in Chicago for more than four years, aren’t rising as quickly as are apartment rents in the city.
Price, of course, shouldn’t be the only factor that consumers consider when debating whether it makes more sense to rent or own. Those consumers who are planning to live in an area for a short period of time might decide that renting is the better choice, even if it is more affordable to own.
Owning a home comes with its own benefits. You can build equity that you can tap for low-interest-rate loans. You might make a solid profit when you sell if your home escalates in value while you own it. Then there’s the sense of pride that comes with owning and maintaining your own home.
If you’re debating whether to buy or rent, take a long look at your situation and finances. And if cost is the biggest factor? Then the odds are that buying is the better choice for you.