As per a new study by Zillow, the amount of time it takes for a homeowner to recoup the costs of their purchase, as opposed to renting the same house, is even shorter than last year. It now takes only 2.96 years for the average homeowner in DC to "break even" on their purchase.
To clarify, the report measures the "break-even" amount as the amount of time it takes to make financial sense to buy a home, as opposed to renting the exact same home. The study found that the longest breakeven times tend to be in pricey cities like Los Angeles, Portland, San Francisco, San Diego, and Washington, D.C.
Last year, the breakeven time for D.C. was 4.7 years, representing a drop of 1.74 years on average. This comes as no surprise considering how property values are rising, as are rents. While we remain at the tail end of the spring market, you may still be positioned to make a great return on your investment, and the Thrive Team can help you through your real estate decisions.
The Thrive Team is organizing a first-time homebuyers Webinar which may help you answer any questions you have regarding homeownership. To sign up for the event, click here.
