What's Hot: RFK Stadium Cleared For Demolition | Airbnb Unveils Icons
Zillow: If You Plan On Staying in DC For At Least 3.5 Years, Buy a Home
According to research from real estate website Zillow, if residents in DC and the surrounding areas are planning on living in a home for more than 3.5 years, buying makes more financial sense than renting.
In an attempt to create a better rent vs. buy index than what is currently out there, Zillow created a “Breakeven Horizon”, or how long it takes for owning to become financially advantageous over renting, for markets across the U.S. While typical wisdom recommends staying in a recently-purchased home for at least five years to overcome transaction costs, Zillow said that the market conditions in each individual city may lower or raise this number.
In the DC metro area, Zillow determined that, on average, home owners can reach the break-even point in 3.5 years. However, the total number of years varies based on the city. In suburbs like Chevy Chase Village and McLean, it will take more than 7 years to break even. Potomac, Bethesda and Arlington are at about 5 years, and DC is at 4.5 years. Several cities in Maryland have break-even points under two years, with those in Prince George’s County taking the very lowest spots.
Zillow determined their breakeven horizon by taking into consideration a host of factors, like price and rent projections for each city, maintenance costs, transaction costs and tax deductability.
While most of the country’s housing markets seem to favor buying, some cities in California have astronomical break-even points that approach 30 years. You can check out Zillow’s data here.
See other articles related to: rent vs buy, zillow
This article originally published at https://dc.urbanturf.com/articles/blog/rent_or_buy_if_you_plan_on_staying_at_least_3.5_years_buy/5859.
Most Popular... This Week • Last 30 Days • Ever
Georgetown Metropolitan reported on Tuesday that the Instagram account for the nation... read »
A Home Equity Line of Credit, commonly referred to as HELOC, is a borrowing product t... read »
The National Park Service has given the green light for DC's 62 year-old stadium to b... read »
UrbanTurf continues our tour of neighborhood developments around the region as we tak... read »
A regular inclusion as one of DC's most expensive housing markets, Georgetown remains... 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