Homebuyers in Chicagoland break even on their homes sooner than expected
It takes just over two years for homebuying to make more financial sense than renting in Chicagoland’s housing market, according to a recent analysis from Zillow.
The “Breakeven Horizon,” as Zillow calls the measurement, looks at how long it takes before owning a home is more financially advantageous than renting, assuming the homebuyer secures a 30-year mortgage at today’s historically low interest rates.
At 2.1 years, Chicago’s break-even point was slightly higher than the national average of 1.9 years, but was still ahead of markets such as San Francisco and Los Angeles, where the Breakeven Horizons are not until 2.9 and 4.1 years, respectively.
Here is a chart that better demonstrates how Chicagoland compares with the rest of the nation’s large metro areas:
|Metro Area||Q4 2015 Breakeven Point (Years)||Median Rent|