It was 33.1 percent cheaper to buy than rent nationwide as of May 24 this year. This report assumes a 30-year fixed mortgage with a 4.1 percent interest rate, a 20 percent down payment, 25 percent tax bracket, and ownership of the home for seven years.
On June 13, the Federal Reserve raised interest rates 0.25 percent. Is it cheaper to buy than rent in the Phoenix metropolitan area? What about the Southeast Valley? Is it still cheaper to buy... now that interests rates have increased? YES! For the Phoenix metro and ALL the key cities of the Southeast Valley, it is cheaper to buy than rent.
Chandler lies about 25 miles southeast of Phoenix. It is one of the more southern cities in the South Valley. With a median sales price of about $290,000 and a median rent price of around $1,600 per month, savvy renters could become their own landlords. It is 29 percent cheaper to buy a Chandler AZ home than continuing to rent. Pay for a trip to Europe with the annual savings of $5,256 annually.
Just north and east of Chandler is Gilbert where it should be a sweat to buy. Get a Mediterranean-style home or a simple rancher because it is 30 percent cheaper to buy than rent in Gilbert. The median rent is $1,500 per month. The median sales price of homes is a little higher at $300,000 but choosing to invest in Gilbert real estate will save renters $309 per month.
Moving to Mesa is a great option, too. The median sales price of a Mesa home is $220,000 while median rent is $1,350. Opting for a piece of Mesa AZ real estate is a wise choice. It is 34 percent cheaper to buy than rent in Mesa. Renters might buy a new car with the savings of $441 per month.
Tempe is tempting due to its close proximity to Phoenix. Tempe AZ homes have a median sales price of $270,000 while the median rent is $1,600 per month. Making it 33 percent cheaper to buy than rent in Tempe. Giving into Tempe’s allure, renters could save $507 per month.
To find great homes in the South Valley view our listings. To find out more about living in the South Valley talk to us! Interest rates are in constant flux making it important to stay abreast of how much house you can afford - Get pre-approved with a local lender.