Want to Live in Greater Philadelphia? Reasons Why Buying Is Cheaper than Renting

Want to Live in Greater Philadelphia? Reasons Why
Buying Is Cheaper than Renting
Despite the fact that numerous Philadelphia neighborhoods are growing, and with that growth comes
apartment buildings designed for renters, buying a home is always going to be the more affordable option.
Here is what you should know about buying a home in greater Philly.
By the Numbers
According to the most recent Rent vs. Buy report from Trulia, Philadelphia is ranked ninth in the list of US
cities where it is cheaper to buy a home than to rent. This is true even though home prices are still quite
high in the area after last year’s broken records. In fact, it’s 50.8% cheaper to buy a home in this area than
it is to rent. The average cost of rent in Philly is $1300 a month, and the average home value is $141,176
according to Trulia, and they compiled this information in March 2016.
An Unbroken Trend?
Those involved with researching for Trulia claim that this trend should continue over the next several
years, and this is due in part to the below-average interest rates for mortgage loans. It is not expected that
home prices or interest rates will climb enough to outpace rent in Philadelphia for the next few years,
which means that anyone considering coming to the area should consider buying as opposed to renting.
Why Buying is Best
If you’re going to live in the same place for at least seven years, and if you are able to pay a 20% down
payment, you’ll save up to 50% on buying your home as opposed to renting in that same timeframe, even
when things like closing costs, homeowner’s insurance, and property taxes are figured in. However, along
those same lines, if you plan to move in fewer than seven years, whether or not buying is the best choice
depends on many different factors. If you have a very low interest rate and your home is in a high-demand
neighborhood, it may still be worth your while to buy, even if your cost of living increases slightly over
renting. You may be able to recoup those funds when you sell.
When to Worry
Home prices continue to climb in Philadelphia, and this creates some concern among buyers. In fact,
house prices are climbing at a faster rate than average rents, which could create problems in a few years’

time. Fortunately, many neighborhoods in Philadelphia are growing at exponential rates, which means
new builds are likely in the works. As more supply becomes available to meet demand, this should force
down housing prices and make purchasing a home anywhere in the city more affordable, even as rents
continue to rise due to future cost of living increases.
Philadelphia is only one of two cities in the Northeast where it is still significantly cheaper to buy a
home than to rent. Experts agree that this trend will continue well into the future, especially as more
homes are constructed and rent prices continue to climb.