Cost to Own vs.
Cost to Rent
The rising cost of homeownership and changing renter preferences are creating unprecedented demand for affordable rental options. Mortgage rates have increased from 3% to 6.5% boxing our an additional 21 million households from qualifying for a $400K mortgage creating more “renters by necessity” than ever before.
Source: John Burns Real Estate Consulting, LLC (Pub: Mar-23)
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Cost Analysis of Homeownership
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OWNING
$ 3,500
Per Month- Mortgage Premium = $1,700
- Insurance = $500
- Taxes = $300
- HOA Fees = $15
- Maintenance = $200
Up Front Costs
Down Payment = $55K
Rehab Cost = $18K
Closing Costs = $5K
Total Up Front Cost = $78k
RENTING
$ 2,200
Per Month- Rent = $2,200
No Up Front Costs