Is it cheaper to rent or to own a home in the Sunshine State?
Personal finance website GO Banking Rates released a guide detailing how the average monthly rent compares to monthly mortgage payments across the U.S. The bottom line: It’s cheaper to own a home than it is to rent one in 42 states, with renting more affordable in only eight states and the District of Columbia.
According to GO Banking Rates, the cost of renting vs. owning in Florida is more – the average savings enjoyed by homeowners in Florida is $398 per month. In its five-stage ranking system – a lot more to own, a little more to own, about the same, a little more to rent, and a lot more to rent – Florida is one of 24 states in the “a lot more to rent” category.
“The good news is mortgage rates are near historic lows,” says Kristen Bonner, lead researcher on the study. “Unfortunately, Americans are still running into road blocks with being able to save enough money to afford a down payment, and are therefore forced to rent.”
The study compared median rent prices for single family homes against the median list price of homes in each state. GO Banking Rates assumed a 20 percent down payment for the median list price and applied a 30-year fixed-rate loan term. It also included the cost of property taxes and insurance.
States where renting is cheaper than owning
- Hawaii: $515 (average monthly savings for renters vs. owners)
- Montana: $248
- Utah: $242
- Idaho: $204
- District of Columbia: $144
- Colorado: $137
- Wyoming: $99
- Delaware: $75
- Oregon: $12
Top 10 places where owning is cheaper than renting
- New York: $1,635 (average monthly savings for owners vs. renters)
- Massachusetts: $559
- Illinois: $522
- New Jersey: $472
- Pennsylvania: $461
- Florida: $398
- Maine: $396
- Ohio: $375
- Alaska: $334
- Rhode Island: $334
Source: “The cost of home renting vs. owning in Fla.,” Florida Realtors