NASHVILLE, Tenn. (WTVF) — At a time when a lot of people wonder if they'll ever be able to afford to buy a home, a new report shows it may be better to keep renting right now.
Realtor.com says it's now more affordable to rent than buy in all major U.S. cities.
Nashville ranks in the top ten metro areas where you can save the most money by renting. That new report says the combination of high mortgage rates, interest rates, home prices, and rent prices dropping are contributing to this trend.
The biggest rental price cuts in the market were to smaller units. Rents have come down as builders construct more apartment buildings and some people rather move into units and find roommates to save money.
While this may be the case now, rent may become more expensive over time than owning as landlords can raise their prices anytime. Homeowners can lock in the bulk of their monthly mortgage payment.
The median monthly rent payment here sits at $1,589. Monthly mortgage payment is almost double at $2,955. Buying a starter home costs 86% more than renting one.
Real estate brokers say in the short term renting may be a good way to save money, but in the long term, buying could help you to build wealth.
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