What's Hot: A Closer Look at the Mansion Tax | New Renderings Show Retail Plaza, Park at 435-Unit Takoma Metro Development
Trulia: Buying 17% Cheaper Than Renting in the DC Area
Despite rising home prices, it is still cheaper to buy than to rent in the DC area, according to a report published today by Trulia. However, that calculation is tipping more in favor of renting.
Trulia determined that buying is 17 percent cheaper than renting in the region. Renting would begin to make more sense than buying in the region if interest rates rose to 5.8 percent. When UrbanTurf has reported on this analysis in the past, the percent in favor of buying has been closer to 30 percent.
As we have reported when covering this analysis in the past, it is important to understand the criteria that Trulia uses when determining if it is cheaper to buy than rent in a metropolitan area.
story continues below
loading...story continues above
The company calculates the figures assuming a 20 percent down payment on a 30-year, fixed-rate mortgage financed with a 3.85 percent interest rate. It assumes people itemize their federal tax deductions and are in the 25 percent tax bracket, and factors in renovation and maintenance costs, as well as insurance, utilities, and property taxes at the average metro property tax rate. For renters, the company tacks on renters’ insurance.
Perhaps most significant in the calculations is that Trulia assumes that a homeowner will live in the home for at least seven years.
If you don’t agree with the assumptions, Trulia has a rent-versus-buy calculator, so that users can play around with specific numbers.
See other articles related to: buying versus renting, trulia
This article originally published at https://dc.urbanturf.com/articles/blog/trulia_buying_17_cheaper_than_renting_in_the_dc_area/10486.
Most Popular... This Week • Last 30 Days • Ever

Clarion Partners, the owner of the Chevy Chase Pavilion, has filed modifications to i... read »

The new development keeps humming along in DC's Buzzard Point.... read »

Where it's cheaper to build than buy; Elon Musk is not making Texas happy; and the wo... read »

If you are tired of getting lost in their stores, IKEA has a new location planned tha... read »

The Townhomes at Michigan Park and Riggs Park Place are now selling their final homes... read »
- Plans Progress For a New Grocery Store at Friendship Heights Mall
- The Stacks, Brooklyn Bowling and a Vermeer: The 5 Developments on the Boards for Buzzard Point
- Friday's Must Reads
- IKEA Opening Small Format, Delivery Only Location in Pentagon City
- New, Move-In Ready Townhomes at EYA’s Northeast DC Neighborhoods
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