What's Hot: Barnes and Noble Will Return to Georgetown in June | The 3,000 Units On The Boards From Trinidad to Gallaudet
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
Rossdhu Gate is the remaining piece of a 30-room castle built by socialite Daisy Calh... read »
A Home Equity Line of Credit, commonly referred to as HELOC, is a borrowing product t... read »
Georgetown Metropolitan reported on Tuesday that the Instagram account for the nation... read »
The Gen Z market; ranking food halls around DC; and is this the new king of Queens?... read »
The term "luxury" has been applied broadly in the housing market, but a new report ai... read »
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