Renting vs. Buying a Home: Which is Best for Your Wallet in Each State?

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Washington, D.C., Arizona and Nevada are among the 11 states where renting is more affordable than buying a home, found a new study by the leading personal finance website GOBankingRates.

To help home-seekers better navigate the housing market in their community, GOBankingRates surveyed all 50 states and the District of Columbia, and identified which states are best for buying a home and which are better suited for renting.

GOBankingRates surveyed all 50 states and the District of Columbia, and identified which states are best for buying a home and which are better suited for renting. (PRNewsfoto/GOBankingRates)

Methodology: To determine whether it’s more affordable to rent or own a home in each state, GOBankingRates sourced the estimated median monthly rent from May 2017 Zillow data on all homes and the median home list prices in every state using May 2017 Zillow data. For North Dakota, the list price was sourced from Trulia due to a lack of available data on Zillow. Current mortgage rates in each state were sourced on June 28, 2017, from Zillow. GOBankingRates then used the Zillow mortgage calculator to determine the estimated monthly mortgage payment, assuming a 20 percent down payment on a 30-year fixed loan. The mortgage calculator also took insurance and taxes into consideration to determine the monthly mortgage payment.

The 11 states in which renting a home is the more affordable option are listed here:

1. Arizona

  • Monthly rent: $1,273
  • Monthly mortgage: $1,326

2. Colorado

  • Monthly rent: $1,807
  • Monthly mortgage: $1,918

3. Washington, D.C.

  • Monthly rent: $2,632
  • Monthly mortgage: $2,718

4. Hawaii

  • Monthly rent: $2,433
  • Monthly mortgage: $2,916

5. Idaho

  • Monthly rent: $1,187
  • Monthly mortgage: $1,299

6. Montana

  • Monthly rent: $1,239
  • Monthly mortgage: $1,420

7. Nevada

  • Monthly rent: $1,293
  • Monthly mortgage: $1,373

8. North Carolina

  • Monthly rent: $1,157
  • Monthly mortgage: $1,233

9. Oregon

  • Monthly rent: $1,642
  • Monthly mortgage: $1,704

10. Utah

  • Monthly rent: $1,440
  • Monthly mortgage: $1,606

11. Wyoming

  • Monthly rent: $1,166
  • Monthly mortgage: $1,174

You can find more details by state in the full study on GOBankingRates.com.

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