Did you know… it is now more expensive to rent than pay a mortgage?
There are pros and cons to renting instead of buying, and some people just prefer to rent and not have to worry about repairs and taxes for a property.
In 42 states, it is actually cheaper to pay a mortgage than a lease right now. The other 8 states (plus Washington D.C.) actually have lower rental rates than typical mortgages.
This report was comprised of price comparisons for the average rental cost for a single-family home, and the sales prices on comparable properties.
Why the discrepancy? As property values rise, so do rents. Because of the recession, interest rates are still very low, so in general, people are paying less in monthly mortgages. Even those who pay an extra insurance in order to supply a lower down payment can pay substantially less than renters.
Find out how your state racks up here.