Thinking you can’t afford to buy a new home? Think that renting is cheaper or more affordable? Despite rising home prices, it is still cheaper to buy a home than rent one in major cities in the US, including Chicagoland!
Typically, the initial transaction costs of buying a home (broker’s commission, title insurance, legal fees, closing costs, etc.) will be offset by benefits like tax write-offs and price appreciation. Those costs will become cheaper than the total cost of renting.
Deciding to buy or rent also depends on how long you plan to live there. Nationwide, home buyers who remain in their homes for seven years will save an average of 38% over renting according to Trulia.
According to Trulia, the Chicagoland market will currently save you 47% over renting. The average median home price at $170,000, and the average rent $1,700. Rent levels have climbed over 7% in the last year while home prices are about $10,000 below the national median.
For most people, the thought of a mortgage is keeping them from owning a home. It’s important to remember that when you rent, you are paying a mortgage – your landlord’s. That means that you are building equity for your landlord, every time you pay rent.