Report: It's Cheaper to Rent than to Buy in DC
While buying a home has been less expensive than renting one in the DC area in recent years, plummeting rental prices in the region now mean that it's a better deal to rent than to buy.
A report by Roofstock calculates that the rent-to-price ratio in the DC area as 5.15%, lower than the nationwide average of 6.26%. The rent-to-price ratio is the median annual rent as a percentage of the median home price for the same property; the lower the number, the better a deal it is to rent than to buy.
The report's conclusions reinforce other data showing that the DC area leads the nation in rental concessions offered, and that rents in DC have dropped by double digits this year as home prices hit record highs.
The DC area has the 38th-lowest rent-to-price ratio out of the largest 53 metro areas. Based on data culled from the Department of Housing and Urban Development, the U.S. Census Bureau, and Zillow, the median monthly rent in the DC area is $1,974, while the monthly mortgage payment for a median-priced home ($459,656) is $1,495.
The report calculates the monthly mortgage payment based on a 30-year, fixed-rate mortgage with a 20% down payment and a 2.72% interest rate.
Thumbnail photo by Ted Eytan.
See other articles related to: buying versus renting, buying versus renting dc, rent vs buy, rent vs. buy, renting, renting in the dc area, renting vs. buying, roofstock
This article originally published at https://dc.urbanturf.com/articles/blog/its-cheaper-to-rent-than-to-buy-in-dc/17648.
Most Popular... This Week • Last 30 Days • Ever
Clarion Partners, the owner of the Chevy Chase Pavilion, has filed modifications to i... read »
Where it's cheaper to build than buy; Elon Musk is not making Texas happy; and the wo... read »
New renderings show the public space that will be part of the huge new residential de... read »
The Townhomes at Michigan Park and Riggs Park Place are now selling their final homes... read »
This week’s Best New Listings includes a three-bedroom home on a 10,000 square foot... read »
At an ANC 4A meeting on Tuesday night, representatives from Whole Foods said that the... read »
The application to raze the infamous fast food location at New York and Florida Avenu... read »
While homeowners must typically appeal by April 1st, new owners can also appeal.... read »
The application has been filed for the American City Diner along Connecticut Avenue i... read »
The 650,000 square-foot project, designed by Adjaye Associates and Hickok Cole, will ... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
- Whole Foods at Walter Reed To Open This Summer
- The End is Here: Raze Permit Filed For Wendy's at Dave Thomas Circle
- How to Appeal Your DC Property Tax Assessment
- Raze Application May Spell The End For One of DC's Last Diner Buildings
- A First Look at the Five-Building Centerpiece of the St. Elizabeth's Redevelopment
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. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro