How long you have to live in 15 major US cities to make buying a home worth your money
SmartAsset
Should you rent or buy a home?
If you're living in a major city, chances are the housing market is competitive — and with higher prices, fees, and closing costs, it may not make sense to buy unless you're staying put for several years.
To give you an idea of just how long you have to stay in a city for it to be worth your money to buy, personal finance site SmartAsset calculated the breakeven point — the point at which the total costs of renting become greater than the total costs of buying — for 29 major cities.
SmartAsset compared the total costs of buying and renting for a household earning $100,000 a year. For the buying scenario, the research team assumed a mortgage rate of 4.5%, closing costs of $2,000, and a down payment of 20%.
A shorter time to break even means it's a better place to buy soon.
Read on to see how long it would take to break even in 15 major US cities cities. We've also included the average monthly mortgage payment, monthly rent, and home price, from SmartAsset's report:
15. Pittsburgh
Flickr / Matthew Paulson
Average monthly mortgage payment: $560
Average monthly rent: $1,069
Average home price: $138,235
Breakeven year: 4.3
14. Denver
Shutterstock
Average monthly mortgage payment: $1,114
Average monthly rent: $1,504
Average home price: $274,835
Breakeven year: 5.4
13. Phoenix
iStock / CraigStocks
Average monthly mortgage payment: $1,122
Average monthly rent: $1,410
Average home price: $276,744
Breakeven year: 5.7
See the rest of the story at Business Insider