As rents continue to rise, interest rates remain low, and home value growth is expected to be strong, buying a home is beginning to distance itself a little bit from renting in terms of being a good financial choice.
In the first quarter of 2016, the U.S. Breakeven Horizon was one year and eight months, according to Zillow. That means it would only take an estimated one year and eight months of living in a home before it would become more financially advantageous than renting it. The Breakeven Horizon for the first quarter of 2016 was three months shorter than the previous quarter.
In fact, homeowners in 72 of the 100 largest markets in the country break even on their homes in less than two years. Among the largest 35 markets in the country, Memphis had the shortest Breakeven Horizon at 1 year while San Diego and Washington, D.C. had the longest at three years and seven months.
For the full report and for interactive infographics and charts, follow the link below.