According to a recent article in Business Insider, some markets favor millennials purchasing rather than renting. Based on general findings by Trulia, the article says that "buying is 36% cheaper than renting on a national basis, based on September home prices. That's the best differential since 2012 when it was 38% cheaper to buy than rent. Buying is also cheaper than renting in each of the nation's 100 largest metros." A study of millennials, however, yields a different outcome.
- "It's 23% cheaper for millennials to buy than rent in 98 out of the 100 largest metros."
- "It's cheaper to rent in Honolulu and Silicon Valley."
- "The South and Midwest housing markets are great for young buyers."
- "Rising prices and rents in some markets spur big swings in the rent vs. buy math."
So where does Seattle stand? Well, according to the chart below, mortgage rates would have to rise by 1.35% in Seattle in order for renting to become cheaper than buying:
Thinking of making the leap into homeownership? Discover why there's #NoPlaceLikeOwn today.