To Rent or Buy?
According to a recent analysis by Attom Data Solutions, it's better to buy a home in the Phoenix Metro Area, than it is to rent. The reason? The median 3-bedroom home price in this area is $225,000. According to Zillow, a 30-year fixed mortgage at today's rate of 3.896% would yield a rent of approximately $955, excluding taxes and insurance.
That translates to housing prices taking up 32.2 percent of the average income in the valley. Compare that to renting that same three-bedroom home for a monthly payment of $1,467. Even after a mortgage, it's still cheaper to buy that same home, than it is to rent it.
Buying instead of renting isn't uncommon. Wage and housing numbers also show it’s better to buy than rent in Las Vegas, Miami, Chicago, Philadelphia, Baltimore and San Bernardino County, California. See the interactive map below for more details.