Trulia: Buying 27 Percent Cheaper than Renting in the DC Area

Trulia’s most recent Rent vs. Buy analysis calculates that it is 26.8 percent cheaper to buy a home in the DC area than to rent — a slightly slimmer margin than last spring.
While this percentage in favor of buying holds true nationwide, the tide is decidedly swinging the other way in some of the most expensive housing markets, including the San Francisco area, where million-plus median home prices make renting a smarter option for those staying seven years or less. Meanwhile, the value proposition for buying in the DC area may be narrowing as median rents have held steady year-over-year while median home prices have increased by 4.2 percent.
story continues below
loading...story continues above
Trulia's methodology is a key factor in these conclusions, with a home purchase factoring in an assumed 20 percent down payment and a 30-year mortgage with a 4.1 percent interest rate; buyers are also expected to stay in their homes for at least seven years. It is also assumed that homebuyers itemize their federal tax deductions at the 25 percent tax bracket and incur expenses such as renovation and maintenance costs, property taxes at the average metrowide rate, utilities and insurance. For renters, renters' insurance of 1.32 percent of monthly rent is factored as an expense.
As always, those skeptical of the report’s assumptions or interested in a more tailored assessment can utilize Trulia's rent-versus-buy calculator to see how specific circumstances tip the scales.
See other articles related to: rent vs buy, trulia, trulia trends
This article originally published at https://dc.urbanturf.com/articles/blog/trulia-buying-27-percent-cheaper-than-renting-in-the-dc-area/14276.
Most Popular... This Week • Last 30 Days • Ever

The Washington Nationals great didn't move out of the area, though.... read »

UrbanTurf put together a quick primer on the ins and outs of a home auction.... read »

As the Capitol Riverfront neighborhood nears its development capacity, a new effort p... read »

Foulger Pratt has plans to turn the 12-story office building at 1133 19th Street NW i... read »

The plans for the large new apartment project from Perseus TDC are coming into focus.... read »
- Mr. National Ryan Zimmerman Lists Great Falls Home For $8 Million
- First-Timer Primer: How to Buy a House at Auction
- Pickleball, Skate Parks + More: The Plans to Revitalize Public Space in DC's Capitol Riverfront
- 180-Unit Office-to-Residential Conversion Pitched For 19th Street Building
- A First Look at the New 350-Unit Project Planned in Bethesda Along East-West Highway
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!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro