Price-to-Rent Ratio

Dated: October 25 2022

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Do you know your community’s price-to-rent ratio?
It compares the cost of renting versus buying a home.
To calculate the price-to-rent ratio, divide your area’s median home price by its median yearly rent price. The higher the ratio is, the more expensive it is to buy compared to rent.
Even if renting seems like the better bargain today, it’s still important to consider the big picture. As the years go by, homeowners can gain equity and pay a fixed mortgage payment. Renters, on the other hand, face price uncertainty and miss out on equity gains.
Trying to decide whether buying or renting is right for you? Check out our latest blog post for more key tips.
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Kim Mauldin

Texas Real Estate License #634179 Please click on the Resources tab for these forms: Texas Real Estate Commission Information About Brokerage Services Texas Real Estate Commission Consumer Notice ....

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