I’ve been writing and talking about this simple economic fact since the early part of this century! The median amount of an Atlanta mortgage payment is indeed cheaper than the median amount of one month of rent.
This good news came up once again last month in my blog post that cites the Trulia rent vs. buy index as a dependable, convenient way to validate local rent vs. buy numbers around North America.
This week, CNBC cites a recent analysis by LendingTree, the personal finance website, which “found that in many desirable U.S. cities — including Miami, Dallas, Denver and Las Vegas — the area’s median monthly mortgage payment is less than the median monthly rent.
Overall, the analysis found that 20 out of the 50 metro areas looked at had lower median monthly mortgage payments than rent. Four of the top 10 are in Florida, where low wages and too few rental units are major factors in Florida’s “rent affordability crisis,” according to LendingTree.”
2 more Southeastern USA cities, Charlotte and Virginia Beach also made the top ten list.
“Other cool cities that have a lower monthly median mortgage payment include Houston, Phoenix, Salt Lake City, Atlanta, San Antonio, Austin, Memphis and Dallas.”
The complete analysis of 50 US cities from late February can be found here.
Check out some of the findings: “Two-bedroom homes are usually cheaper to buy than rent in the nation’s largest metros. It is only cheaper to rent a two-bedroom home in 9 of this study’s 50 metros. Average Median mortgage costs for two-bedroom homes are around $117 cheaper than median rent costs.
For three-bedroom homes (which represent the largest share of homes in the country) median mortgage payments are cheaper than median rent payments. On average, median mortgage payments are approximately $73 cheaper than median rent payments for three-bedroom homes.
It is cheaper to rent a four-bedroom home in 22 of the nation’s largest metros, while it is cheaper to buy in 28. Though it is cheaper to buy a home in the majority of the nation’s metros, areas like New York and Boston mean that the average median rent in the U.S. is $29 cheaper than the average median mortgage cost.”
In all but 7 metros it is cheaper to rent a home with five or more bedrooms than it is to buy one. Average median rent costs for five plus bedroom homes are $304 cheaper than average median mortgage costs.
Atlanta comes in at #15 on the list, with a median rent amount of $1166.00 per month, and a median mortgage amount of $1110.00 per month. That $56.00 difference leads us to the next questions – What about the personal financial impact of downpayment amounts? What about the local effect of Georgia’s county taxes? What about city municipality taxes on top of county taxes? What about FHA loans? VA loans? What about the variety of conventional loans? What about jumbo loans? How do all of these measure up, dollar for dollar?
For a little more reading that adds emphasis to owning in Atlanta, the AJC’s June 2018 article covers this same subject and calls Atlanta a “top 20 metro” for owning. “For homeownership, analysts assumed a mortgage rate of 4.5 percent, closing costs of $2,000 and a 20 percent down payment. They then assessed the break-even point at which the total costs of renting become greater than total buying costs. Areas with the shortest time to break even are considered the top metros to buy over rent.”
Call us at The Wieloch Group when you are ready to get your real estate on! We bring over 60 years of experience to our clients and we will be happy to answer any questions that you have about Atlanta real estate. The numbers are in and year, after year, after year metro Atlanta mortgage payments are cheaper than rent!