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

In today's market, owning a home is not always the most affordable choice based on where you live in the U.S.

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Jul 24, 2017, 12:15 ET

LOS ANGELES, July 24, 2017 /PRNewswire/ -- 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.

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.

Click here to view the full study results.

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.

About GOBankingRates

GOBankingRates.com is a personal finance news and features website dedicated to helping visitors live a richer life. From tips on saving money to investing for retirement or finding a good interest rate, GOBankingRates helps turn financial goals into milestones and money dreams into realities. Its content is regularly featured on top-tier media outlets, including MSN, MONEY, AOL Finance, CBS MoneyWatch, Business Insider and dozens of others. GOBankingRates specializes in connecting consumers with the financial institutions and products that best match their needs. Start your journey toward a rich mind and full wallet with us here.

Contact:

Natalie Richter, Media Relations
GOBankingRates.com
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SOURCE GOBankingRates