Les Christie, a writer for CNNMoney, reports that “Home prices have taken such a beating and demand for rental units has increased so much that it’s now cheaper to buy a two-bedroom home than to rent one in most major U.S. cities.
“According to real estate website Trulia, buying was cheaper than renting in 74% of the country’s 50 largest cities in July. In just 12% of the cities, including New York, Seattle and San Francisco, renting was cheaper. In the remaining 14% of cities, renting was less expensive but close to the cost of buying.”
These national trends certain reflect the real estate market in Chicago, where the price tags attached to houses and condos are becoming more and more manageable, while the price tags attached to apartments have remained more or less the same for several years. If anything, rental prices seem to be increasing somewhat while buying prices decrease dramatically.
Christie insists, though, that the relatively low cost of buying a house or condo in a city like ours isn’t the only reason to purchase a home right now:
“In addition to a continuing decline in home prices, rock-bottom interest rates have added a lot of weight to the buy side of the scale. The overnight average rate for a 30-year fixed was just 4.19% on Monday, according to Bankrate.com. A 15-year fixed averaged just 3.43%.”
“Add in the tax perks of home ownership and for those who can afford it (and who can actually qualify for a loan), it certainly is a buyer’s market.”
If you’re still unsure of whether you’d rather rent or buy after reading through Christie’s research, however, consider checking out this article, which digs deep into the make-up of the Chicago real estate market at the moment. Or, if you’re interested in learning more about various homes available for purchase in the Chicago area, you ought to check the CondoDomain blog regularly for articles like this one!