The Cost Of Home Ownership Vs Renting Returns To Normal Levels

In another sign that the housing market is beginning to recover, the costs of owning a home versus renting are returning to historical norms.

The decline in home prices and historically low mortgage rates have dropped the after-tax cost of home ownership to only 125% of the cost of renting. This is at an 18 year historical average.

Additionally, in more than 25 of the top housing markets, the ratio is below the 18 year average.

Renters now see the lower cost of ownership, low mortgage rates, and the $8000 first time home buyer tax credit and are more likely to become homeowners.

If you would like more information regarding mortgage rates or a referral for a Realtor, email dwalters@integritymtgonline.com or call 678.648.5626

Source: The Wall Street Journal
Renters Lose Edge on Homeowners
March 2, 2009