Buying VS Renting

Buying VS Renting

Should you buy or rent a home? In South Florida, that decision is a no-brainer — for those who plan to stay and have the means, a new report shows.

The cost of buying in Palm Beach, Broward and Miami-Dade counties is 50 percent cheaper, the fifth-highest spread among the top 100 metro areas nationwide, according to real estate website


It's cheaper to buy in every major metro because home price increases have leveled out over the past year while rental rates for apartments and single-family homes continue to soar, Trulia said. More young professionals are postponing homeownership, while other potential buyers struggle to qualify for mortgages.

"Rents have increased faster than home prices, and with fixed mortgage rates as low as they are, the advantage is to the homeowner because they can lock in a large percentage of the monthly cost, unlike a renter," said Greg McBride, a senior financial analyst with in North Palm Beach.

In its calculations, Trulia factored property taxes and insurance into the cost of buying and assumed a 3.87 percent interest rate on a 30-year, fixed-rate mortgage. The website also assumed buyers made a 20 percent down payment, itemized tax deductions at the 25 percent bracket and stayed in the home for seven years.

The Trulia calculations didn't include homeowner's association fees. When those are considered, buying beats renting in South Florida by 34 percent. The tri-county region has the nation's fifth-highest median monthly HOA dues at $310.

Although the figures clearly favor buying, Ralph McLaughlin, housing economist for Trulia, said renting is the smarter choice for many South Floridians, including those who lack sufficient savings or who want to move easily for jobs elsewhere.

"If you don't plan to stay in the home for seven years, it's better to rent versus buy, even though rents are really high compared to prices," he said.

Home price gains have slowed across South Florida after double-digit increases in 2012 and 2013. Meanwhile, rents here are rising faster than they are nationally.

Thousands of rentals are being built across South Florida, but the new supply still doesn't match the rate at which South Florida developers built apartments in the last rental boom a decade ago, Axiometrics said.

Sarasota had the biggest buy-versus-rent difference, at 55 percent, while Fort Myers was next at 54 percent. Baton Rouge, La., (53 percent) and New Orleans (52) also ranked ahead of South Florida.

[email protected], 561-243-6529 or Twitter @paulowers

Copyright © 2016,Sun Sentinel

Victor DeFrisco Headshot
Phone: 561-951-3759
Dated: August 3rd 2016
Views: 266
About Victor: ...

Property Search

RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Buying Is Now 26 Percent Cheaper Than Renting In The US - The results of the latest 
How Much Has Your Home Increased In Value - Home values have risen
New Listing 7712 Park Lane Road Lake Worth FL 33449 - New Listing!!!!This beautiful
Sep 23 2018 58263 2 - Home Flips Plunge as

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Exit Realty Premier Elite
8961 Hypoluxo Road
Lake Worth, FL

Other Locations