Most Tri-Cities housing markets stack up well against nation rent v. buy break even horizon

Zillow is using the muscle of its database of home sales and price data for an infographic that maps the break even horizon for markets the Tri-Cities and nation.

The national Q1 break even point is 2.1 years. Most of the Tri-Cities markets are below that or just above it.

Here’s how the folks at Zillow explain their break even horizon:

“The decision to buy or rent is really a choice between a) buying a home that you hope will appreciate in value or b) renting a home, spending less on housing (at least in the early years), and saving the difference in some form that earns interest, say as stocks or bonds, instead. Options (a) and (b) each have their associated costs net of benefits. The Breakeven Horizon between renting and buying gives the number of years you would have to live in the home for the accumulating net costs of renting to exceed those of buying. In other words, after buying and living in a home for more years than indicated by the Breakeven Horizon, homeowners begin to have more money and assets than they would have if they had rented the same home over that same time period.

Here’s what some of the local horizons look like:

Fall Branch – 2.1.

Johnson City 2.1 in 37604 – 2.8 in 37615

Jonesborough 2.3

Limestone – 1.7

Telford 2.1

Blountville 2.0

Bluff City 2.5

Bristol 2.2

Kingsport – 1.1 in 37665 – to 2.3 in 37660.

The infographic is available by CLICKING HERE.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: