A new report shows South Carolina has one of the country’s strongest buyer’s markets when it comes to home sales. Three S.C. metro areas were ranked in the top 10 markets in which it is better to buy a home than rent.
Financial technology company SmartAsset gathered data on average rents and home prices, then compared the financial impact of buying to renting in every metropolitan area in America.
Columbia ranked second overall in the country, behind Gary, Ind. Other S.C. markets in the top 10 included Charleston/North Charleston at five and Greenville/Anderson/Mauldin at eight.
The study compared total costs for households earning $100,000 a year. Each scenario assumed a mortgage rate of 4.5%, closing costs of $2,000 and a down payment of 20%. The group then found the break-even point at which the total costs of renting become greater than the total cost of buying.
Columbia’s average home price was $188,197. The average mortgage price was $723 compared to an average monthly rent of $1,223. The break-even point was calculated at 1.4 years.
The study only considered metropolitan areas with a population greater than 200,000.
|Rank||Metro||Avg. Monthly Mortgage Payment||Avg. Monthly Rent||Avg. Home Price||Breakeven Year||Rent vs. Buy Index|
|3||Baton Rouge, LA||$903||$1,208||$234,537||1.4||99|
|5||Charleston-North Charleston, SC||$1,106||$1,480||$287,306||1.5||98.5|
|10||New Orleans-Metairie, LA||$937||$1,324||$244,188||1.8||96|