According to a recent article posted by Florida Realtors, it's cheaper to own a home than rent one in 42 States. Personal finance website GOBankingRates.com released a guide detailing how monthly rent compares to monthly mortgage payments across the U.S. To see the price breakdown for all U.S. states.
According to GOBankingRates.com, 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. GOBankingRates 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 - (average monthly savings for renters vs. owners)
- Hawaii: $515
District of Columbia: $144
Top 10 places where owning is cheaper than renting-(average monthly savings for owning vs. renting)
- New York: $1,635
New Jersey: $472
Rhode Island: $334