Buying A Home Cheaper Than Renting In D.C. Area, At Least For Now

Buying a home in the D.C. Metro area is 31 percent cheaper than renting according to a report by the real estate blog Trulia.

The number may seem high, but the nation’s capital is not alone — the data shows it is cheaper to buy than rent in each of the 100 largest metro areas in the country.

The study compares the estimated sale price and rents for similar homes in similar neighborhoods, including relevant secondary costs like maintenance, insurance, taxes, security deposits and more. It also assumes the prospective tenant is in the 25 percent tax bracket (making between $72,500 and $146,400 for married joint filers), has secured a 4.8 percent mortgage rate on a 30-year fixed-rated loan with 20 percent down, and will live in the house for at least seven years.

To read the full article, go to WAMU.org.

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