Buying vs Renting
Save money every month by becoming a homeowner rather than a renter. Pay yourself and not a landlord. What you pay in rent every month is many times equivalent to what you would pay for a mortgage. Did you also know there are cities in CT that are more economical to own rather than to rent? Didn’t think you could afford to own, think again.
The Census Bureau has released the latest estimates from the American Community Survey for all cities in Connecticut with a population of 60,000 or more with sufficient data to estimate the price to rent ratio. See the 5 places in Connecticut with the lowest price to rent ratio below, and the highest price to rent ratio places at the bottom of the list.
The price to rent ratio is the median home value divided by the median annual rent. At its most basic level, the ratio is a benchmark for understanding whether it is better to rent or buy in an area. When home prices rise significantly faster than the local rents, the ratio will rise – indicating a possible housing bubble where it may be better to rent. Anything under 15 indicates that it is likely more affordable to buy, and areas over 20 are likely better to rent.
The Top 5 Cities in CT that are better to BUY versus RENT are:
- Waterbury, 14.2
- New Britain, 15.9
- Bridgeport, 16.3
- New Haven, 17
- Hartford, 17.5
New Britain, CT saw the biggest percentage increase in price to rent ratio at 7.1%.
For a full list go to HomeArea.com.
If you are currently renting in any one of these cities mentioned above, odds are you are paying more every month to live in your rental home than if you were to pay a monthly mortgage on a home you could call your own!
There are many mortgage programs that could qualify you as a new home owner, some with smaller down-payment options and others with a credit score as low as 580.
Call, text or email me today for information on Buying VS Renting and how you too can become a homeowner, start saving money monthly and stop paying a landlord! I
Donna VanderPoel, 203-988-6975 or [email protected]
Mortgage Loan Originator #1712575
Northeast Financial #117273
210 South Main St. Middletown, CT