Buying A Home is 54% Cheaper Than Renting In Charlotte, NC.

According to a recent study done by Trulia; it is cheaper to own a home in all of the 100 largest metros in the United States versus renting a home in those same areas. Since I am concentrated in the Charlotte, NC. area I decided to dig a little deeper and see how the numbers transpire in the charlotte, NC. market. Based on the analysis they did which factored in the average cost of home ownership over a seven year period versus the average cost of renting over the same period. This was done with homes for sale and for rent from the months of June through August 2012. So, the data is currently the most recent on the market today. Because the amount of foreclosures over the past few years and the amount of families that are doing short sales; the demand for rental market has picked up. With the increase in the rental market for houses; prices have gone up with them. It is a supply and demand economic issue. When supply is low and demand is high you can get more money and when supply is high and demand is low you get less money. All the major apartment complexes and property management companies that I know always base their rental prices on the supply and demand of the market.... In the Charlotte area the rental prices have been ticking upwards for the past few years which in turn has led to more first time homebuyers coming out and purchasing a home. And now that housing prices are ticking upwards as well it is interesting to see how the difference translates over a seven year period. The average cost to own a home in the Charlotte, NC. market is $691.00 a month versus $1487.00 to rent a home. That difference calculates out to be $797.00 a month or 54% every month. Those numbers are based on you selling the house in seven years and do factor in property taxes, home owners insurance and other costs associated with owning a home. The numbers look quite dramatic. But the part of the equation that is left for an unknown is if you are going to sell the house in seven years and additionally factors in that profit as well... By all standards the average family moves every seven years; so using that is not something that is out of the ordinary. But what if you plan on staying there longer? It still is cheaper to own than it is to rent...In the long run you are paying less a month and you have tax benefits that you do not have with a rental. In addition you know what your monthly payment is going to be every year (with the exception of insurance or taxes being adjusted) versus an apartment complex or a rental house where the payment can fluctuate as much as 20% year to year..... With home prices starting to climb and the latest data showing inventory starting to diminish it may be the best time to buy that home you have wanted to buy in the Charlotte, NC. Market. Dave diCecco Realtor/Broker Coldwell Banker United www.davedicecco.com