Trulia: Buying 27 Percent Cheaper than Renting in the DC Area
✉️ Want to forward this article? Click here.

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

When you buy a home in the District, you will have to pay property taxes along with y... read »

In this article, UrbanTurf explores what renters insurance is and what it covers.... read »

The application filed with Montgomery County seeks to extend the validity of a plan t... read »

Even as the housing market has slowed this year in the DC region, there are still ple... read »

1834 16th Street NW was originally designed by one of the most influential architects... read »
- First-Timer Primer: Tax Relief for DC Homeowners
- What is Renter's Insurance?
- Are Plans For The Redevelopment of GEICO's Headquarters Inching Forward?
- 8 Days Or Less: The DC Neighborhoods Where Homes Are Selling Fastest
- A Gorgeous, Newly Renovated Victorian Hits the Market on the Avenue of the Presidents
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