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The Cost of Renting vs. Owning: The Latest Numbers Are in

Should you rent your home, or should you own your home? It’s a debate people have been having for years, and both sides present reasonable points. On one end, renting gives you more freedom to move, you don’t have to worry about maintenance issues, and you don’t have to come up with the money for a down payment. On the other end, owning a home allows you to totally customize your space, you don’t have to worry about roommates, and you’re building future equity.

Out of all of these factors, the biggest is probably the financial difference. If you’ve been weighing your renting versus buying options in Jersey City, then the latest numbers might surprise you.

Renting vs. Owning

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According to a study conducted by CoreLogic last month, the average cost of rent has shot up in the past fifteen years, reaching record high numbers in some areas. Of course, it’s not incredibly surprising that rent has risen, since cost of living in general has gotten higher. But the speed at which prices have gone up —almost 40% in December 2018 compared to December 2005—is remarkable.

On the flip side, mortgage payments have actually decreased. How is that possible? Well, compared to 2005, mortgage rates are significantly lower. Back then you could expect to pay around $941 a month, whereas in 2018, payments were closer to $904. And that’s not all—from November 2018 to February 2019, the “percentage of income needed” to afford a standard mortgage dropped by almost 1.5%.

Cost of Living in Jersey City

Liberty State Park in Jersey City.

These are national numbers based on averages, so how does this study translate to New Jersey? According to Zillow, the average cost of rent in Jersey City hovers around $2,200. The average home price is right around $480,000. Assuming you were able to make a 20% payment and have 30-year fixed-rate mortgage, your monthly mortgage payments will be a little over $1,800.

It might be surprising, but when you break down average rent versus average mortgage, the homeowners come out on top—even in a pricier market like Jersey City.

Want To Save in the Long Run?

A row of homes with a tree in focus.

Then you should look into buying a home in the Jersey City area. Whether you’re looking for a home on the lower end of the price range or a luxurious estate, you’ll find a variety of options, ranging from almost $1 billion to around $150,000.

Of course, buying a home is an intimidating process, especially if it’s your first time. Luckily, you don’t have to do it alone. When you work with me, I’ll help you navigate all of the market trends, find a home that matches your specific wants and needs, and answer all of your questions in the process!

Let’s Get Started

Whenever you’re ready to kick off the home search process in Jersey City, just give me a call! In the meantime, narrow down your search, get to know more about me, and explore a few of the other resources I have to offer. Remember, if you have any questions, I’m just a phone call away!

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