Home buyers in the Puget Sound region “break even” on a home purchase in 1.9 years.
The “Breakeven Horizon” study, published by Seattle online real estate company Zillow, found that home buyers across the country break even on a home purchase in less than two years in 70% of housing markets. The break even horizon as the number of years after which buying is more financially advantageous than renting.
Zillow credits the short time frame to low interest rates, rising home values and rising rent. The average rent for an apartment in Seattle is $1,931 per month.
The study notes that, nationally, those under 35 remain employed at the same place for about three years so buying may not make sense, even if paying a mortgage would be more affordable.
Some are saying that millennials in the Puget Sound region will begin to buy houses in 2016 because confidence in the housing market will grow. The median price of a King County home is now about $508,000.
Dallas has the shortest break even point, at 1.3 years. Washington, D.C., has the longest, at 4.5 years.