For many people in South Florida and across the nation, buying a home beats renting in three years or less.
Real estate website Zillow.com analyzed the break-even point – the amount of time it takes before owning is better financially than renting. Buyers in West Palm Beach and Miramar break even in 1.4 years, while it takes a little longer in Fort Lauderdale – 2.8 years.
The South Florida area — which includes Palm Beach, Broward and Miami-Dade counties — is tied with six other major metros for the shortest amount of time — 1.6 years.
To find out what the magic number is in your city, click here.
Big price declines during the housing bust and a rise in rental rates have made buying an attractive option these days.
“This is the first analysis of metros and cities that presents the buy-versus-rent decision in an intuitive way, by telling consumers how long they must live in the home before buying breaks even with renting financially,” Zillow Chief Economist Stan Humphries said. “It’s much more understandable, and therefore useful, than the abstract notion of a simple ratio of prices to rents.”
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