Buying vs Renting
Is it better to buy or rent? Whether renting is better than buying depends on many factors. NAR members help their clients answer this question with statistics and studies on home owners and renters as well as financing options and tips.
The chart 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 less than the rental payment after 3 years.
Source: Ginnie Mae
Source: Ginnie Mae
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