As prices climb along with increased market energy and buyers bringing multiple offers, renting may seem like a more affordable alternative. But don’t let the frenzy fool you, last year, buying was 46% cheaper than renting. This year, due to an increase in prices, the difference dropped to 44%, but still proves to be more cost effective because of decreasing mortgage rates which equates to increased affordability for buyers.
As always, location plays a large role in the decision, but there are also many other factors to consider. How long you will be living in that location, sale price versus rent price, monthly costs of owning/renting, maintenance, insurance, taxes and much more.