Trulia reported that buying proves cheaper than renting in DC by 32%. (Slightly less than the nationwide average of 33%) — according to a recent study.
If you can afford to put up a decent-sized down payment, the study suggests that despite a market with rising home prices, low mortgage rates have kept buying a good deal, since rents continue to escalate at a rate nearly equivalent to home prices.
The study assumes a traditional 30-year fixed rate mortgage with a 20 percent down payment. Due to the overhead costs of buying, the study also accounts for the length of time it takes to first live in an area before purchasing a home makes more sense than renting. On average, residents generally commit to living in the area for about 5 years before buying makes more financial sense than renting. For more information about this study and how buying proves cheaper than renting in DC, click here.
