Do you know your community’s price-to-rent ratio?
It compares the cost of renting versus buying a home.
To calculate the price-to-rent ratio, divide your area’s median home price by its median yearly rent price. The higher the ratio is, the more expensive it is to buy compared to rent.
Even if renting seems like the better bargain today, it’s still important to consider the big picture. As the years go by, homeowners can gain equity and pay a fixed mortgage payment. Renters, on the other hand, face price uncertainty and miss out on equity gains.
Trying to decide whether buying or renting is right for you? Check out our latest blog post for more key tips.
Buy Now or Rent Longer? 5 Questions to Answer Before Purchasing Your First Home