A recent analysis of the monthly cost of buying vs. renting, released by GoBankingRates.com, revealed that unless you live in Hawaii, Montana, Utah, Idaho, Colorado, Wyoming, Delaware, Oregon, as well as the District of Columbia, it is cheaper to buy. MarketWatch staffer Catey Hill takes a look at the analysis which compared the monthly cost to rent the median-priced single-family home in each state with the monthly cost of owning that same home.
While rents and home prices have rose, mortgage rates have remained low, which benefits buyers. However, renters should not just drop everything and buy:
...(and, no doubt, high rents make it harder for many consumers to save up for a down payment), experts say. “It is important for consumers to still consider all the facts before buying,” says Bonner. This includes things like the state of the housing market in their area and whether they have enough money for a down payment and out-of-pocket household repairs, she says.