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:
- 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?
- Property taxes and mortgage interest are both tax deductible.
- You don’t have to adhere to the landlord’s restrictions about how you decorate, landscape, or upgrade your home.
- Owning a home can provide you and your family with a sense of stability and comfort.
- When you own a home, it’s your asset – build equity for yourself, not your landlord.
- 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!