Anyone who intends to live in Las Vegas for at least a year and eight months is better off buying than renting, a new study from Zillow real estate listing service shows. Zillow also found that the break even point takes about 3 years in ¾ the 200 metro areas it studied.
The Miami/Fort Lauderdale area is another place where buyers are able to get to the break even point in under 2 years. This is due to the fact that both the Las Vegas Valley and the Miami/Fort Lauderdale areas experienced some of the biggest price drops during the housing recession.
On the other end of the spectrum is the San Jose, California area, where it takes over 8 years for buyers to just get even as compared to renting.
Historic levels of affordability across the country and record-low interest rates make buying a home a better decision than renting, especially since rents have risen more than 5 percent over the past year.
All possible costs associated with buying and renting were incorporated into the analysis, including down payment, mortgage and rental payments, transaction costs, property taxes, utilities, maintenance costs, tax deductions and opportunity costs, while adjusting for inflation and forecasted home value and rental price appreciation.
The chart below lists the top metro areas where buyers get to the break even point the quickest if they purchase a home over renting one.
How many years it will take before owning a home becomes more financially advantageous than renting the same home.
|Miami-Fort Lauderdale||1.6 years|
|Tampa, Fla.||1.6 years|
|Las Vegas||1.7 years|
|Orlando, Fla.||1.7 years|
|Riverside, Calif.||2.0 years|
|Dallas-Fort Worth||2.1 years|
|Pittsburgh, Pa.||2.1 years|
|Columbus, Ohio||2.4 years|
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