3.5 Years: DC Area Homeowners Have Longest Breakeven Point in the Country
A Georgetown home that sold earlier this year.
Homeowners in the DC region will need to stay in their homes for about 3.5 years to “break even,” according to a recent report.
The Zillow report, released twice a year, tallies the “Breakeven Horizon” (BEH) for 35 metropolitan areas in the country — and the DC region, along with San Diego had the longest breakeven horizon at just over 3.5 years.
The breakeven point is the time it takes for the initial costs of purchasing a home and its investment value to outweigh the ongoing costs of renting. Zillow assumes that homebuyers put 20 percent down and have secured a 30-year, fixed-rate mortgage. Other housing costs such as taxes, fees and security deposits were also factored into the calculations. The national breakeven point is currently 1.8 years.
story continues below
loading...story continues above
Across the DC region, the BEH varies by location. Areas in Prince George’s County have the shortest BEH in the region, while Fairfax and Montgomery County have the longest. In DC proper, the zip codes of 20003 (6.4 years) and 20001 (5 years) have some of the longest breakeven points, while 20017 (2 years) has one of the shortest.
“Over the most recent quarter, Breakeven Horizons have shortened across much of the country, driven by the combination of falling price-to-rent ratios and an uptick in expected home value appreciation over the next year,” the report stated. “In most large metros, rent appreciation outpaced home value appreciation, pushing price-to-rent ratios downward – particularly in the Northeast.”
This article originally published at https://dc.urbanturf.com/articles/blog/3.5_years_dc_area_homeowners_have_longest_breakeven_point_in_the_country/11362.
Most Popular... This Week • Last 30 Days • Ever
If there was ever a place where the old adage “one man’s trash is another man’s... read »
In this article, UrbanTurf will explain what special assessments are, how they work, ... read »
The median price of a home in the region in April rose to $640,000, well above the pr... read »
This week's Best New Listings includes a four-bedroom home in Hyattsville, a chic Dup... read »
Plans are moving forward at the site of a long-planned project in Ivy City, however w... read »
- Tile, Furniture, Appliances & (Much) More -- The Local Warehouse Chock Full of Salvaged Home Goods
- What Are Special Assessments in Condo Buildings and What Do They Cover?
- DC-Area Home Prices Shatter Record in April
- Best New Listings: 140 Years in Hyattsville, 100 Years in Bethesda
- Douglas Development Pitches Large Warehouse For New City Site Along New York Avenue
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro