New Homes and Communities

Many Americans are still clinging on the American Dream like Austin new home sales, buying a new house in the hopes of making a fortune. While surveys show that more and more people no longer see owning a brand new home as a great investment, it is still cheaper to buy a house than rent one in most of the major cities across the United States. The key here is to determine the price-to-rent ratios in your area. The following are some examples to give you a clearer picture of the housing market today.

1. New York
Everyone knows it isn’t cheap to live in New York. Manhattan commands one of the biggest home prices in the United States, with the median being $520,000. Single-family houses in Big Apple are much more affordable, thankfully. And if you’re planning to rent, the median rent is around $2,850. This means you can save as much as 22% if you live in the new house for at least seven years. Thanks to low mortgage rates, buying is still the better option in terms of savings.

2. Los Angeles
Houses in Los Angeles have become 20% more expensive in the past year. But even so, it is still cheaper to buy a house in the City of Angels instead of renting one. Like New York, this is all thanks to low mortgage rates. Take note that this depends on the location of the house. Bel Air residents easily shell out at least a million dollars for new homes, while those living in the San Fernando Valley need not pay more than a couple hundred thousand dollars.

3. Chicago
Chicago is one of the best places in the US to buy a new home. Median home prices in the Windy City are only $170,000, $10,000 below the national median. Rents, meanwhile, are far and above national levels, increasing by 7% over the past year. This means significant savings to those looking to buy a house. Buyers can save as much as 47% over renting.

4. Dallas
Dallas has one of the most stable economies in the US, thanks to huge energy companies in the area. Home prices have also remained stable for many years due to ample land to build on and a steady stream of buyers. During the housing crisis, home prices in Dallas fell by just 11%, far less compared to other major cities. The median home price is $190,000 while the median rent is $1,650.

5. Houston
Houston is very similar to Dallas in that many energy industry players are located in the area, helping boost their economy immensely. The median home price is $200,000. This number has remained stable over the past few years, thanks to the vast amount of land to build on. You can save as much as 45% if you buy a new home in Houston.

Recent numbers clearly show that buying new homes remains the better option compared to renting. If you have the budget and if you plan to stay at your new home for at least seven years, there is really no reason not to make the purchase.

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