Traditionally, owning a home is touted as a smarter financial move than renting one. But with demand increasing and the supply of houses for sale falling, home prices have been rising nationally, according to real estate marketplace Zillow. So, you might be wondering: Is it better to rent or buy a home?
To find out where it makes more sense to rent or buy a home, GOBankingRates once again surveyed the cost of renting versus owning a home in all 50 states and the District of Columbia. Since conducting a similar survey in 2016, we found that the number of places where it’s more expensive to own than rent has increased from nine to 11 — this includes a few states where the price difference is minimal.
For this year’s study, we looked at the estimated rent price for all homes listed on Zillow. (However, it’s worth noting that in last year’s study, we examined the cost to rent only single-family homes). We also calculated the estimated monthly mortgage to own a home in each state, based on the median list price of homes listed on Zillow, a 20 percent down payment and a 30-year fixed-rate loan. Click through to find out whether you should rent or buy a home in your state.