98 Cities Out Of 100, It’s Better To Buy Than Rent
Well, so, there’s that question answered, Millennials. Don’t rent, buy. All you have to do now is find the down payment. Perhaps on the streets of New York?
Across the U.S., the report said, it’s 23 percent cheaper for a young household to buy a home than to rent one. … Trulia compared the median costs of buying and renting and found that San Jose and Honolulu are the only two U.S. cities where renting is a better deal.
Trulia’s researchers factored in down payments, property taxes, security deposits, and other costs, as well as expected home price and rent appreciation, when comparing renters and buyers. They assumed for their analysis that millennial buyers can afford to put just 10 percent of the sales price as a down payment, and that they’ll stay in the home for only five years.
Out of 100 metro areas, there are only two where it makes more financial sense for millennials to rent. That’s not surprising, I guess, considering how low interest rates are vs. how Too Damn High the rent is and continues to be these days.
Still, there are plusses to renting, including some amount of flexibility if you don’t plan to be in the same place for five years. Or if you can’t plan because you don’t know. Five years is a long time! Who here has a five-year plan? Raise your hand.
Actually, I’ll bet a higher percentage of Billfold readers have five-year plans than the general population. Drat. Well, if you don’t, don’t feel bad; I don’t have anything close to resembling one, and on occasions when I’m already feeling vulnerable, remembering that is all that’s necessary to make me want to get back in bed and hide under the covers.
If you do have a five year plan, though, and it includes remaining in the same place — especially, say, Houston — maybe forward this story to the most generous relative you have and make your pitch for why they should help you make this wise financial decision.