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Renting vs. Buying Florida Real Estate: The Cost Difference in These 5 Cities
By Caitlyn Moorhead,
7 hours ago
Whether you want to direct your feet to sunnier streets in Florida just for a change of pace or as part of your long-term retirement plan, when you are choosing between renting and buying you need to take hard stock of your finances. Though renting offers greater flexibility and less commitment, homeownership provides a more stable investment with a chance to grow your money.
Renting does not build equity, but it offers more financial flexibility and fewer responsibilities. Renters are not liable for property maintenance, major repairs or property taxes, providing a hassle-free living experience. This flexibility can benefit those who may relocate frequently or prefer not to invest a significant amount of money in real estate.
Homeownership involves paying down a mortgage while building equity, and properties typically appreciate over time, potentially yielding a profit when sold. Homeowners also enjoy tax benefits, such as deductions on mortgage interest and property taxes. However, they must also handle ongoing costs like maintenance, repairs and market fluctuations.
The upfront costs of renting are generally lower than buying whereas purchasing a home requires a substantial upfront investment and down payment. Essentially it comes down to how your short-term savings look when compared to your long-term financial goals. GOBankingRates recently did a study to determine the cost difference between renting and buying based on such factors as median household income and average home values, mortgage payments or rental costs, and here are the key takeaways from these five cities in Florida .
Methodology: For this study, GOBankingRates found the average cost of living for homeowners and renters in the USA’s largest 100 cities by population. First GOBankingRates found the top 100 cities by population as sourced from the US Census American Community Survey. For each city, a number of factors were found including; total population, total households and household median income all sourced from the US Census American Community Survey. The cost of living indexes were sourced from Sperlings BestPlaces and by using the national average expenditure costs for all residents, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey for all residents. The single-family home value was sourced from the Zillow Home Value Index and by assuming a 10% downpayment and using the national average 30-year fixed mortgage rate as sourced from the Federal Reserve Economic Data, the average mortgage rate can be calculated. The average rental cost was sourced from the Zillow Observed Rental Index for each city. The average rent cost and average mortgage cost can be used with the average expenditure cost to calculate the total cost of living for renters and homeowners. The cities were ranked to show the cheapest to most expensive cities and then sorted by total population to show the cost of living for homeowners and renters in the top 100 cities by population. All data was collected on and is up to date as of July 15, 2024.
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