Get updates delivered to you daily. Free and customizable.
GOBankingRates
Renting vs. Buying Real Estate: See the Cost Difference in 7 Arizona Cities
By Caitlyn Moorhead,
3 hours ago
The decision you make when determining whether or not you have the ability to rent a home or buy it outright is one of the most significant financial undertakings you’ll experience. Either way, you could be making steep monthly payments but when it comes to the Arizona housing market what is the cost difference? Whether you are currently focusing on short-term savings goals or long-term financial health, deciding to rent or buy or buy will boil down to several factors.
Arizona’s real estate market has experienced significant growth in recent years, particularly in major cities like Phoenix, Tucson and Scottsdale. Home prices have risen, driven by population growth, low interest rates and a strong economy. However, the market varies widely across the state, with some areas offering more affordable options fixed-rate mortgages or homeowners insurance than others.
Renting in Arizona can be more affordable in the short term, as it involves lower upfront costs compared to the costs of buying. Renters typically pay a security deposit and first and last month’s rent, but avoid the significant down payment and closing costs associated with a home purchase. Additionally, renting offers predictable monthly expenses, as renters are not responsible for property taxes, repairs or maintenance.
Buying a home in Arizona requires a substantial initial investment, including a down payment, closing costs and potential upfront repairs or renovations. Monthly mortgage payments may be higher than rent, but they contribute to building equity in the property. Homeowners also benefit from potential tax benefits such as deductions on mortgage interest and when paying property taxes.
GOBankingRates recently did a study to determine the cost difference between renting and buying based on such factors as the overall cost of living, median household income, average home values, mortgage payments or rental costs. Here are key takeaways from these seven major cities in Arizona.
Methodology: For this study, GOBankingRates found the average cost of living for homeowners and renters in the largest 100 U.S. cities by population. First GOBankingRates found the top 100 cities by population as sourced from the U.S. Census American Community Survey. For each city, a number of factors were found including; total population, total households, household median income all sourced from the U.S. 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 U.S. 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.
Get updates delivered to you daily. Free and customizable.
It’s essential to note our commitment to transparency:
Our Terms of Use acknowledge that our services may not always be error-free, and our Community Standards emphasize our discretion in enforcing policies. As a platform hosting over 100,000 pieces of content published daily, we cannot pre-vet content, but we strive to foster a dynamic environment for free expression and robust discourse through safety guardrails of human and AI moderation.
Local Arizona State
Most Popular
Comments / 0