Buying Remains 36% Cheaper Than Renting | Oahu Rental Market Keeps Rising
Bases on Oahu in picture above: Check out Military.HawaiiLife.com to help you search for a home close to your base.
In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.
The updated numbers actually show that the range is an average of 5% less expensive in Orange County (CA) all the way up to 46% in Houston (TX), and 36% Nationwide!
A recent study by GoBankingRates looked at the cost of renting vs. owning a home at the state level and concluded that in 36 states it is actually ‘a little’ or ‘a lot’ cheaper to own, represented by the two shades of blue in the map below.
If you look below and see the island chain of Hawaii, it is one of the three highest states to rent in.
One of the main reasons that owning a home has remained significantly cheaper than renting is the fact that interest rates have remained at or near historic lows. Freddie Mac reports that rates fell again last week to 3.43%.
Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989.
Bottom Line
Buying a home makes sense socially and financially. If you are one of the many renters who would like to evaluate your ability to buy this year, let’s get together and find you your dream home.
If you need any information about selling or about buying a home, please contact me.
Aloha for now! See you next time!
MM
Live the dream…Get your Hawaii Life now.
#MMSellsHawaii
Cassandra
August 12, 2016
The map says Hawaii is a lot cheaper to rent than to buy. Is the map wrong or is your reading of it backwards?
Michele McKinley, R(B) SFR
August 12, 2016
Aloha Cassandra,
Yes, Thanks for catching that. It is still cheaper to Buy in Hawaii in most places then rent with the low rates and benefits you get from owning a home.
Warm aloha,
MM
Cassandra
August 12, 2016
The map says Hawaii is a lot cheaper to rent than to buy. Is the map wrong or is your reading of it backwards?
Michele McKinley, R(B) SFR
August 12, 2016
Aloha Cassandra,
Yes, Thanks for catching that. It is still cheaper to Buy in Hawaii in most places then rent with the low rates and benefits you get from owning a home.
Warm aloha,
MM