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 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. 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.
8. North Carolina
Buying vs. Renting a Home in North Carolina
- Monthly rent in North Carolina: $1,157
- Monthly mortgage in North Carolina: $1,233
- Should you rent or buy: Rent
In 2016, it was more expensive to rent than own a home in North Carolina. But now, it costs $76 more to own than rent, likely due to a sharp rise in home prices. The median home list price jumped from $226,750 in May 2016 to $249,000 in May 2017, according to Zillow data.