According to Trulia’s first quarter 2011 index, it is officially cheaper to buy than rent in the DC area, along with 72 other large US cities. With rent averaging $2500-3000, and an average purchase price of $400-500k, the price to rent ratio is hovering around 14.
According to Inman News: “A price-to-rent ratio of 1 to 15 means that it’s much cheaper to buy than to rent in a particular city. A ratio between 16 and 20 means that it’s more expensive to rent than to buy, but, depending on the family’s situation, buying could “make financial sense,” the site said. Any ratio above 20 indicates that owning is much more costly than renting in a city.”
Of course, there are many factors to consider when deciding to rent or buy. If you’d like to discuss the home search process, please contact us, or consider attending one of our upcoming free first time home buyer classes.
More Resources: New York Times Rent vs Buy Calculator