Even high rents are cheaper than buying in Dallas area
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About 79% of properties in Dallas-Fort Worth are cheaper to rent than buy, according to an analysis by Redfin.
Context: The D-FW average is actually below the national average of 81% but well above Houston's average of 48%.
Why it matters: Even as rents are rising and house prices are dropping, renting still remains cheaper for most locals.
Details: The mortgage on a median-priced home in the Dallas area costs $3,076 a month. That same home would cost $2,682 a month to rent, according to the analysis.
- Redfin's calculations are based on a 5% down payment and a 6.5% interest rate on a 30-year mortgage for a home purchased in March.
Yes, but: That doesn't necessarily mean that renting is a better financial decision. Homeowners build up equity, have stable monthly costs, and enjoy tax benefits, Redfin notes.
State of play: The Dallas area has led the nation in population growth the past two years, and many new homebuyers are moving in from more expensive metros out of state.
Zoom in: Dallas is cheaper than Austin, where only 5% of properties are cheaper to buy than rent.
- In San Antonio, 38% of properties are cheaper to buy. In Houston, more than half of properties are cheaper to buy than rent.
What's next: We're hosting an event exploring ways to improve affordability in the local housing market at noon tomorrow.
- Guests include state Rep. John Bryant (D), Dallas Department of Housing & Neighborhood Revitalization director David A. Noguera, and The Real Estate Council president and CEO Linda McMahon. Register here to attend in person.