Renting vs. Buying in Columbia

Renting vs. Buying in Columbia

By Katie Bassett

 

The choice between renting and buying a home is one of the biggest financial decisions you will make. With home prices are rising across the country, people are shying away from buying options. However, buying a home is still 37.7% cheaper than renting on a national level. The decision to rent vs. buy will be dependent on the area you are deciding to live in.

 

A Peak at the Current Market  

It has only become slightly cheaper to buy vs rent because of the rising home prices. Home prices have increased by 5.9 % since last year compared to an increase of 3.5% for rents. However, mortgage rates have dropped from 3.9% to 3.7% in the past year, which still gives home buying an advantage. By using a mortgage rate calculator, you can determine the best financial option for you, and if your mortgage rate would be above or below industry average to better.

 

Living in Columbia

It is more cost effective to rent vs. buy in the top 100 metros across the country, but some cities obviously see higher monetary benefits than the rest. Columbia rounded out the top 10 metros with the largest financial advantage of homeownership. As of 2016, the median home value in Columbia, SC is $124,733.00 and renting averages come to $1,125.00 per month. These prices indicate that it is 50.6% cheaper to buy a home versus renting in Columbia.

 

The top ten metros with the largest financial advantage of home ownership include:

  1. Miami, FL
  2. West Palm Beach, FL
  3. Houston, TX
  4. Fort Lauderdale, FL
  5. Charleston, SC
  6. Baton Rouge, LA
  7. New Orleans, LA
  8. Syracuse, NY
  9. Philadelphia, PA
  10. Columbia, SC

 

Factors That Influence Price in Columbia

The city continues to see steady growth since the recession, which indicates a slow increase in home prices. When looking at Columbia home buying trends, there are various factors that affect the price in Columbia, some of which include home size and location. Given the demographic of Columbia, single-family homes and condominiums tend to sell the quickest in the city. Additionally, school districts will play a major role in neighborhood popularity, which can also affect home prices.

 

Don’t Wait to Buy  

Whether you are a first-time buyer or a seasoned vet in the industry, now is the time to buy Columbia real estate. Take advantage of the lower mortgage rates now before they increase, making it harder to purchase a home.