Homebuyers in Atlanta break even on their homes sooner than expected
It takes just under a year and a half for homebuying to make more financial sense than renting in Atlanta’s housing market, according to a recent analysis from Zillow.
The “Breakeven Horizon,” as Zillow calls the measurement, looks at how long it takes before owning a home is more financially advantageous than renting, assuming the homebuyer secures a 30-year mortgage at today’s historically low interest rates.
At 1.4 years, Atlanta’s break-even point was lower than the national average of 1.9 years, and was actually lower than all other major metro areas.
Here is a chart that better demonstrates how Atlanta compares with the rest of the nation’s large metro areas:
Metro Area | Q4 2015 Breakeven Point (Years) | Median Rent |
U.S. Average | 1.9 | $1,381 |
Atlanta | 1.4 | $1,274 |
Boston | 3.1 | $2,247 |
Chicago | 2.1 | $1,633 |
Houston | 1.5 | $1,579 |
Los Angeles | 4.1 | $2,491 |
Miami | 2.5 | $1,822 |
New York | 3.1 | $2,384 |
Philadelphia | 2.8 | $1,558 |
Phoenix | 2.3 | $1,249 |
San Francisco | 2.9 | $3,338 |
Seattle | 1.9 | $1,931 |