Both home prices and rental rates are on the rise in the Greater Seattle and Puget Sound regions. Let’s break it down in Renton and ask the question: Is it better to rent or buy in the Renton area right now?
To determine this, first let’s look at the median home price in Renton. As of this February 2017, the median home price in Renton is $400,000. We will use this number as we proceed.
Let’s put $400,000 into a Buy Vs. Rent calculator. My favorite is this one, from the New York Times, as it accounts for a number of factors that the user can choose based on their own projections. When we do this, we find that renting would be a better option if we could find a rental below $1458 per month.
This assumes a 20% down payment with a 30-year mortgage and a host of other factors such as maintenance, tax filing status, cost to sell, etc. For the best numbers, we recommend running your own analysis at the NY Times site.
According to Rent Jungle, the average rent for a 2-bedroom apartment in Renton is $1743.
Obviously, the median home would be far superior to a 2-bedroom apartment. It’s no wonder with numbers like these that the buyer demand is so high.