Phoenix, Arizona is 49% cheaper to live in if you own your own home versus renting according to a new study published by online property listing site Trulia.
I’m not going to dig into all the methodology behind the published study. As you can imagine there are many many variables that lead to what it costs to own a home. How many years closing costs are amortized over etc. But the numbers are so stark that I think it illustrates a point even if it could have a slightly high margin of error.
Owning Vs. Renting Phoenix
The numbers published for Phoenix are
Monthly Cost of Ownership: $625
Monthly Cost of Renting: $1,223
Difference: $598
Difference as %: 49%
Wow almost $600 a month and that’s on average homes in Phoenix. The difference on a Scottsdale luxury home must be far higher in dollar terms.
Certainly what I’m seeing on the ground mirrors this. Many rental properties are just not offering value for money at the moment.
The two big take aways from this are.
1. If you are a renter. It’s a good time to become a buyer.
2. There’s a lot of money to be made investing in real estate currently.