Unless you plan to stay a while in the home you buy – say, for at least 2.6 years in Denver – renting might provide the better option in many major U.S. cities.
According to Zillow, it would take 2.6 years before a recent Denver home owner starts building equity and can cash in on tax breaks. In that case, it is more financially advantageous to remain in the rental market a while before buying a home.
Denver and one other Colorado community, Colorado Springs, were among the top 15 cities where renting rules based on how long it takes to “break even” on a home, according to Zillow.
Zillow reports: “With the Zillow Rent Index up 8.3 percent year-over-year, Denver can feel pricey for renters. But for a couple of years, sending in a rent check each month could beat the costs associated with buying a home in the Mile High City. It currently takes 2.6 years for buying to make more financial sense than renting the same Denver home.”
San Jose, Calif., had the least wait break-even time of the top 15, with a “breakeven horizon” of 2.5 years. Denver was third, and Colorado Springs was fifth with 2.8 years before home owners break even.
Here’s a look at all top 15 cities where “renting rules,” according to Zillow:
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