Buy vs. Rent Comparison
The chart below shows a cost comparison for a renter and a homeowner over a 7 year period.
The renter starts out paying $800 per month with annual increases of 5% The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000
After 6 years, the homeowner's payment is lower than the renter's monthly payment
With the tax savings of homeownership, the homeowner's payment is lessthan the rental payment after 3 years
Source: Ginnie Mae. Click on image to enlarge.
Statistics & Studies on the Buy vs. Rent Decision
Rent vs Buy: Where Should You Invest?, (Mortgage Dex May, 2014).
The Housing Affordability Challenges of America’s Working Households, (Housing Landscape, Feb. 2014).
Is It Better to Buy or Rent?, (New York Times, 2014).
Renting vs. Buying a Home: Which Is Smarter?, (U.S. News, 2014).
Poll: Number of Renters Who Want to Own Skyrockets, (REALTOR® Magazine, Jan. 3, 2013).
American Renters Getting Squeezed, (REALTOR® Magazine, July 5, 2012).
Why renters should consider buying a home, (Tampa Tribune, May 29, 2012).
Rents Keep Rising as Demand Soars, (REALTOR® Magazine, Feb. 28, 2012).
12 Markets Where It’s Better to Rent., (The Fiscal Times, Jan. 4, 2012).
"Are Retirees Better Off Renting than Owning a Home?", (OutOfYourRut.com, Apr. 22, 2011).
In Most of U.S., Buying a Home Beats Renting After Only 3 Years, (HouseLogic.com, Jan. 11, 2010).
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