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Rent Or Buy In Arizona?

by Michelle Trimmell on September 26, 2011

I saw an interesting report today about whether it’s more economical to rent or own homes in Maricopa and Pinal counties.  It had a comparison ratio of median purchase price to median annual rent.  The lower the ratio, the better it would be to own a home.  The higher the ratio, the better it would be to rent.  Ratios of 15 or lower favor owning a home.  From 16-20, there’s no significant difference.  Anything over 20 means renting a home is the way to go.

All 25 cities surveyed in Maricopa and Pinal counties have a ratio where owning is more beneficial.  The lowest ratio is in Florence (5.0), followed by Coolidge (5.5). Phoenix was third, with a ratio of 5.9.

Here’s a look at the rest of the cities surveyed and their ratios, in ascending order:

  • Casa Grande, 6.3
  • El Mirage, 6.5
  • Glendale, 6.7
  • Tolleson, 7.0
  • Avondale, 7.8
  • Mesa, 8.2
  • Buckeye, 8.3
  • Maricopa, 8.3
  • Laveen, 8.7
  • San Tan Valley, 8.9
  • Goodyear, 9.1
  • Peoria, 9.1
  • Tempe, 9.1
  • Chandler, 9.7
  • Surprise, 10.1
  • Sun City, 10.5
  • Gilbert, 10.8
  • Litchfield Park, 11.2
  • Queen Creek, 12.8
  • Sun City West, 14.9
  • Scottsdale, 15.6
  • Fountain Hills, 15.8

Six Reasons to Buy a Home Instead of Renting:

  1. Why pay your landlord’s mortgage payment with interest when you could spend the same amount of money in this market and own your own home?
  2. Property taxes and mortgage interest are both tax deductible.
  3. You don’t have to adhere to the landlord’s restrictions about how you decorate, landscape, or upgrade your home.
  4. Owning a home can provide you and your family with a sense of stability and comfort.
  5. When you own a home, it’s your asset – build equity for yourself, not your landlord.
  6. Buying a home in today’s market is just like buying a stock when it’s low and selling it when it’s high – homes will greatly increase in value when the market inevitably turns around so there’s a great chance to profit here.

So as I’ve been saying, it’s a buyer’s market here in Arizona.  The list of reasons goes on and on.  Ultimately, with unconventionally low rates and prices, and a surplus of inventory, you can’t go wrong with buying a home here today.  Add in foreclosures and short sales, and you have quite the buyer’s market.  So, snatch it up folks!

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