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Study: Miami named top buyers’ market in the U.S.

by James McClister

rent-versus-buying-cheap-trulia-anlaysis-median-home-price-real-estate-miami

Nowhere in the country does buying beat renting more than in Miami, a new report confirmed.

In its analysis, listing portal Trulia based its buying vs. renting determination on an array of factors, including median home prices and rents, total monthly costs (including mortgage payments, maintenance, insurance and taxes), one-time costs (including a down payment, sale proceeds, and security deposits) and future costs (which take into account rent appreciation and inflation).

It found that in Miami, buying a home with a 3.7 percent mortgage rate and a 20 percent down payment was 53.2 percent cheaper than renting, which, as our chart below shows, is the best in the nation:

City Median Home Price Median Rent Buy vs. Rent
Miami, FL $259,527 $2,000 -53.2%
West Palm Beach, FL $241,509 $1,950 -53.2%
Houston, TX $176,513 $1,575 -52.9%
Fort Lauderdale, FL $217,342 $1,800 -52.9%
Charleston, SC $218,090 $1,575 -52.5%
Baton Rouge, LA $158,405 $1,350 -51.7%
New Orleans, LA $171,302 $1,450 -51.2%
Syracuse, NY $122,040 $1,400 -51.0%
Philadelphia, PA $141,176 $1,300 -50.8%
Columbia, SC $124,733 $1,125 -50.6%

To put that figure into perspective, the median home price in Miami, according to Trulia, is currently $259,527; for buying to be less cost effective than paying the city’s median monthly rent of $2,000, home prices would need to jump by 127 percent to $589,127, or mortgage rates would need to increase 252 percent to 12.9 percent.

In Miami’s current market, where home price appreciation has slowed over the last year and rents have risen, it’s unlikely that either of those scenarios will become a reality any time soon.

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