Study: Buying Beats Renting in Most Cities

Popular Posts:

• 10 Experts Pick the 10 Best Stocks for 2013
• Why Visa Is Suing Walmart
• Fed: Full Steam Ahead for Rail Stocks

Recent Posts:

• Netflix Dreams Big: 6 Stocks in 60 Seconds
• Fed: Full Steam Ahead for Rail Stocks
• You’re Never Too Old to Nap: Top Shelf Spas
• View All Posts

A recent study by Zillow shows that, in most places, buying a home is a better financial decision than renting — if you plan on living in the home for at least three years.

The analysis was based on 200 metros and 7,500 U.S. cities. And in more than 75% of those areas, the three-year rule held true.

All possible costs were also considered in calculations, from the down payment to tax deductions and opportunity costs. And numbers were adjusted for inflation and expected home value and rental price appreciation.

In some areas, home-buyers break after under two years of owning a home. In others, though, things aren’t so bright — and it would take around a decade for home-buyers to break even. For the most part, though, buying still seems to be the way to go.

More housing headlines:

• July’s Best, Worst U.S. Housing Markets for Days on Market
• 10 U.S. Cities Where Homes are Cheaper Than Cars
• 5 Most Affordable & 5 Most Expensive Housing Markets in the U.S.
• Hottest and Coldest Housing Markets in the U.S.