Renting or Buying a Florida Home — What’s Cheaper?
On May 20, 2014, Zillow released its annual Breakeven Horizon report. By comparing the many financial components of renting versus buying, Zillow determines the number of years a person would need to live in a home for homeownership to become more financially advantageous than renting.
For homeowners in the Ocala, Orlando, Tampa, Palmetto, Lakeland, and Winter Haven, Florida markets, the breakeven number is approximately one year. That means that after just one-year of homeownership, you will be saving more money than you would if you were renting for the same period of time.
Here is the breakdown for each metro:
- Ocala, Florida — The breakeven horizon is 1.0 year, with calculations based on a median rent of $930 and median home price of $100,964. Annual rents are expected to increase by 2.97 percent with home prices expected to increase by 7.01 percent.
- Orlando, Florida — The breakeven number is also just 1.0 year, with a median rent of $1,285 and median home price of $153,088. Annual rent values are expected to increase by 3.53 percent with home prices expected to increase by 8.29 percent.
- Tampa, Florida — The breakeven horizon is 1.1 years or approximately 13 months, with a median rent of $1,226 and median home price of $135,872. Annual rent values are expected to increase 3.69 percent with home prices expected to increase by 6.14 percent.
- Palmetto, Florida - The breakeven number is 1.2 years or approximately 14.5 months, with a median rent of $1,389 and median home price of $138,551. Annual rent values are expected to increase 4.20 percent with home prices expected to rise by 3.98 percent.
- Lakeland, Florida — The breakeven point is again just 1.0 year, based on the median rent of $1,086 and a median home price of $115,372. Annual rent values are expected to increase 2.63 percent with home prices expected to increase by 5.52 percent.
- Winter Haven, Florida — The breakeven point is also just 1.0 year, with a median rent of $916 and median home price of $79,461. Annual rent values are expected to increase 0.46 percent with home prices expected to rise by 4.26 percent.
You may take a look at the full Breakeven Horizon report on Zillow for details on how they calculated the numbers.
If you are unsure about purchasing because you are do not have savings to spend on the down payment, we have got you covered there, as well. In addition to our affordable home prices from the low-$100,000s, qualified buyers can purchase one of our new homes in Florida with just $99 down!
If you purchase your Florida new home NOW, in just one year, you will break even and start saving more of your hard-earned paycheck. Just think of what you could do with the extra money you’ll put in your pocket by purchasing a new home instead of renting.
For more information on our beautiful new homes in Ocala, metro Orlando, Tampa Bay, Palmetto, Davenport, Winter Haven and Lakeland, visit the Highland Homes website today! There has never been a better time to achieve your American dream of homeownership.
Tags: Home Buying Misconceptions home buying own v. rent Zillow
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