NBC Connecticut has been focused on the housing challenges our state is facing.
Now a new report finds – in some cases – renting might be something to consider instead of buying.
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WATCH HERE“I think we have to move away from the narrative that buying is good and renting is bad,” said Alex Gailey, a Bankrate analyst.
Bankrate has been crunching the numbers and came out with a recent Rent vs. Buy study and the results might be kind of surprising.
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SIGN UP “The housing market in the 50 largest U.S. metros continue to tip in favor of renting as the more cost effective option in the short term,” Gailey said.
Here’s what it looks like in the Greater Hartford area.
The average rent is $1,880 and the average mortgage payment is $2,558.
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That makes buying 36%, or $678 more expensive each month.
“If you want to be a homeowner, you should still continue to strive towards that goal. But I would also say don't rush into buying in this market if you don't feel like you're in a really strong financial position,” Gailey said.
There are some caveats as the study did not consider other factors like renters avoiding home repairs and owners getting to build equity.
But rents have not surged like homes which face increasing prices, interest rates, taxes, and insurance.
“I think it's important that if you are a renter that you are actually putting your savings to work and you're building wealth in other ways, such as investing in the stock market,” Gailey said.
If your life plans allow you to think more long term, buying can have its advantages, but the math these days is making it so it takes more years to break even.
