Buying a Home in DC is Cheaper than Renting
According to a Trulia study published on October 15, 2014, buying a home in DC is 34% cheaper than renting a home in DC. This number is 4% lower than the national average of 38%.
The following information provided by Trulia shows how the payoff of buying versus renting can differ according to where in the DC area you may choose to live.
Fairfax, VA - 25% less
Loudoun, VA - 26% less
Arlington and Alexandria - 30% less
District of Columbia - 33% less
Montgomery County, MD - 34% less
Prince William, VA - 35% less
Prince George’s MD - 57% less
In order to determine whether it is cheaper to buy than it is to rent in a metropolitan area, Trulia assumes:
20% down payment on a 30-yr, fixed-rate mortgage financed with a 4.3% interest rate
people itemize federal tax deductions and are in the 25-percent tax bracket
homeowners will live in a home for a minimum of seven years (Note: Seven years may be a long time to live in one place, especially if the market is steep)
Trulia also factors in:
property taxes at the average metro property tax rate
Renters’ insurance is added on for those who rent.
After factoring in alternative financing, including different kinds of mortgages and down payment amounts, Trulia’s rent vs. buy calculator calculates and finds that nationally, buying is cheaper than renting every time. However, buying may not be for everyone even with the cost differences between buying and renting.
If the cost difference between buying a home in DC and renting interests you, Sheena Saydam is the DC area real estate agent you want to work with. She is experienced, knows what type of competing buyers are in your market and is genuinely interested in helping you reach your goals. Contact Sheena by email at Sheena@SaydamProperties.com or by phone at (202) 243-7700 today to begin actively searching for the perfect place to call home!