A new report from Zillow confirms what most local real estate experts already know: buying a Las Vegas home becomes significantly cheaper than renting in a relatively short amount of time. In fact, the metro area’s “break-even horizon” — the time it takes for home ownership to become less expensive than renting — currently stands at around just 18 months on average.
That’s much faster than many other large cities. Our neighbor to the south, Phoenix, has a break-even time of nearly 40 months. In San Diego, you’ll have to wait well over 4 years before owning becomes cheaper than renting a home. And in several other popular cities across the country it still makes more sense to rent than to buy.
Zillow factors in all of the major costs associated with buying and renting to come up with their data. Upfront payments, closing costs, mortgage payments, insurance costs, taxes, utilities, normal maintenance, and monthly rent are all used in their calculations.
In Las Vegas, Henderson, and most of the rest of Southern Nevada rental rates are steadily increasing. At the same time, interest rates are still at historically low levels, keeping borrowing costs very low.
The bottom line: it makes a lot of financial sense to buy a house in the Las Vegas area right now. There are still great deals to be had and buying the right home can easily be one of the best investments you’ll ever make. But who knows how much longer interest rates will remain so low…
Contact us to begin the search for your Las Vegas or Henderson dream home today!
You can learn more about the Zillow findings here… Buy or Rent: Insight for the Undecided
Photo credit: wildlasvegas