This should not be news, but it is nice to see a third-party “ with its hand in both sides of the market “ compare the cost of home ownership to the cost of renting. Trulia calculates the price-to-rent ratio for the 50 largest U.S. cities using the median list price compared with the median rent on two-bedroom apartments, condominiums and townhomes listed on their site.
- Price-to-Rent Ratio of 1-15: Owning a home is much less expensive than renting in this city.
- Price-to-Rent Ratio of 16-20:The total costs of homeownership in this city are greater than the costs of renting, but it might still make financial sense to buy depending on the situation.
- Price-to-Rent Ratio of 21+: Renting in this city is much less expensive than owning a home.
- Total costs of homeownershipinclude mortgage principal and interest, property taxes, hazard insurance, closing costs at time of purchase and ongoing HOA dues and private mortgage insurance, where applicable. It also includes an offset for the tax advantages of homeownership, including mortgage interest, property tax and closing cost deductions.
Total costs of renting include rent and renter™s insurance.
The metro Jacksonville™s price-to-rent ratio is an 8, making it the second-most affordable city in the Southeast, trailing only national-leader, Miami. The remaining Southeastern metropolitan areas were significantly higher: Baltimore “ 12, Atlanta and Nashville “ 13, Charlotte “ 14, and Louisville “ 15.
We have some great homes “ at great prices “ right now. If you™re considering moving up to larger home or to an amenity-rich neighborhood, or if you™re thinking about investing in real estate, check out the homes at www.GoWithGalli.com. Our team of specialists can help you find the perfect home!