Is Renting Cheaper Than Buying?

Renting is just throwing money away, right? Not quite: In some of the largest U.S. counties, renting is actually cheaper than buying, according to a new report by ATTOM Data Solutions, a property database in Irvine, Calif. In the report, average rent would save a family money when compared to buying a home in 53 percent of the 855 counties analyzed. The report compares renting a three-bedroom property with buying a median-priced three-bedroom home, and it found that the larger the location’s population, the more likely it is that someone would score a deal on rent than on a home, especially when you factor in homeowners insurance and taxes. 

While the decision to rent or buy a home is about more than a simple math equation, it can be helpful to look at the big picture when analyzing your individual finances and your local market.

ATTOM Data Solutions, a property database in Irvine, Calif., recently released its 2020 Rental Affordability Report, which compares renting a three-bedroom property with buying a median-priced three-bedroom home in 855 counties. Its analysis found that buying is more affordable than renting in 53 percent of those counties.

The analysis is based on market rent data from the U.S. Department of Housing and Urban Development, wage data from the Bureau of Labor Statistics and publicly recorded sales records from ATTOM Data Solutions.

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