Study says buying is cheaper than renting long-term in Jersey City

In most locations, people rent a place to live until they can afford to buy a property because renting is cheaper than owning a home.

But, there is one New Jersey city where the opposite is true: it’s cheaper to buy than it is to rent long term.

The research comes from Today’s Homeowner; according to the survey, here are some of the top reasons people are choosing to rent:

⚫ 60% said they love not having to pay for any major repairs or home maintenance
⚫ 50% said they enjoy having predictable monthly payments
⚫ 43% said they like the flexibility that comes with renting

Alternatively, here are some of the biggest cons to renting:

⚫ 49% said they got stuck with bad neighbors
⚫ 48% said they fear they could be evicted at a moments notice
⚫ 46% said they worry about not building any equity

Jersey City Homeowners Spend $11,320 Less On Housing Than Renters Each Year

The average homeowner in Jersey City will spend a total of $1,853,594 over the course of 30 years. Renters in Jersey City will spend an average of $2,193,182 in that same time period. Annually, that breaks down to a yearly savings of $11,320.

Nearly 80% Of Renters Want to Be Homeowners but Have Financial Concerns

The survey found that 78.3% of renters eventually aspire to become homeowners. But with rent costing Jersey City residents an average of $3,156 each month, buying a home is nearly impossible. Let’s break down some of their barriers to entering the housing market:

⚫ 59% say they cannot afford a down payment on a home
⚫ 47% say interest rates are too high right now
⚫ 34% say there is nothing affordable near them right now
⚫ 20% say consumer debt, like credit card debt, is holding them back

Opinions expressed in the post above are those of New Jersey 101.5 talk show host Bill Doyle only.

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