Do You Know the Real Cost of Renting vs Buying?


In general, it is less expensive to own than it is to buy, especially over the long term.  in Madison WI, typically that long-term payoff happens in about 2 years for most folks in typical situations.  If you have a crazy-great deal on rent that will be different, but generally, the rent to own calculation is about 2 years.  Why?  Because in Madison, the cost of rent is absurd.  Absurd.

Don’t take my word for it – there is a GREAT Rent v. Own calculator where you can put in your own numbers, then give me a call or a text.

Some Highlights:

•Historically, the choice between renting or buying a home has been a close decision.

•Looking at the percentage of income needed to rent a median-priced home today (30%), vs. the percentage needed to buy a median-priced home (15%), the choice becomes obvious.

•Every market is different. Before you renew your lease again, find out if you could use your housing costs to own a home of your own!