In South Florida, buying a house appears to be more financially beneficial than renting one for millennials. This is because buying residential real estate is 43 percent less costly than renting one in the Miami-Dade County area. Purchasing a house is also 44 percent less expensive in Broward County.
In the Miami-Dade area, the median rent currently stands at $1,955. Some individuals may be surprised that buying a house is better than renting simply because home prices have risen over the past four or so years. However, rents have been going up simultaneously during this period.
The median single-family home and condo price in Miami-Dade was nearly $241,000 back in September. Meanwhile, the median home price in Broward was $200,374, compared to a high rent of $1,750. As a result, renters in South Florida are actually spending more than they would if they had a mortgage, and those who rent lack the benefit of being able to build equity in a house long term. When buying a house, putting 10 percent down is more realistic for first-time home purchasers and millennials than putting the traditional 20 percent down.
Nearly 70 percent of house in South Florida have a price tag of under $300,000. With buying a house becoming more affordable than renting one for millennials, many individuals may be interested in exploring house ownership opportunities in the Sunshine State. The process of purchasing a home, however, involves many steps and can be complex. Proper legal guidance may help individuals successfully complete residential real estate transactions and realize their dreams of home ownership.
Source: Miami Herald, "Buy or Rent? For millennials in South Florida, housing study has an answer", Nicholas Nehamas, Oct. 21, 2015