Renting vs. Buying Real Estate: See the Cost Difference in These 5 Virginia Cities

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The decision to rent or buy a home is one that many Americans will face at some point in their lives. Many people dream of owning their own home, but is it actually cost effective to do so? While owning a home is a dream for many, figuring out if it’s truly the best financial move requires a closer look at both your money and your lifestyle.

Renting is appealing because it comes with some built-in conveniences. You don’t have to worry about the costs of upkeep and repairs that homeowners deal with. You also have the freedom to move on short notice if your circumstances change. But renting has its downsides, too. You may also have to deal with rent increases each year. Plus, you’re not building any long-term financial security by renting.

On the other hand, buying a home is often seen as a good investment. Your monthly mortgage payments go toward building equity, meaning you’re slowly owning more of your home. Homeownership can also come with tax breaks, like deductions on mortgage interest. But buying a home comes with a lot of upfront costs — like a down payment and closing costs — and ongoing expenses such as property taxes.

A recent study by GOBankingRates looked at the data on average home values, cost of living and other factors to determine the cost of renting and buying in five Virginia cities. 

The data suggests that it’s more expensive to own than rent in Virginia — sometimes by a little, sometimes by a lot. This is especially true in Arlington, where the cost of owning is almost 150% higher than renting. If your dream is to buy a home in The Old Dominion, then you should be prepared to spend more each month.

Also these five steps can make your first real estate investment successful.

Virginia Beach  

• Average Home Value: $406,933 
• Average Monthly Mortgage Payment: $2,410 
• Average Monthly Rent: $1,984 
• Average Monthly Expenses: $2,044  
• Homeowner Monthly Cost of Living: $4,454
• Renter Monthly Cost of Living: $4,028 

Chesapeake  

• Average Home Value: $395,813  
• Average Monthly Mortgage Payment: $2,344  
• Average Monthly Rent: $1,970  
• Average Monthly Expenses: $2,049 
• Homeowner Monthly Cost of Living: $4,393 
• Renter Monthly Cost of Living: $4,018 

Norfolk  

• Average Home Value: $301,405  
• Average Monthly Mortgage Payment: $1,785   
• Average Monthly Rent: $1,603  
• Average Monthly Expenses: $1,915  
• Homeowner Monthly Cost of Living: $3,699
• Renter Monthly Cost of Living: $3,518  

Arlington  

• Average Home Value: $805,486  
• Average Monthly Mortgage Payment: $4,770  
• Average Monthly Rent: $2,658  
• Average Monthly Expenses: $2,244  
• Homeowner Monthly Cost of Living: $7,013 
• Renter Monthly Cost of Living: $4,901  

Richmond  

• Average Home Value: $357,704  
• Average Monthly Mortgage Payment: $2,118  
• Average Monthly Rent: $1,613 
• Average Monthly Expenses: $1,923  
• Homeowner Monthly Cost of Living: $4,041 
• Renter Monthly Cost of Living: $3,535  

Methodology: For this study, GOBankingRates found the average cost of living for homeowners and renters in the largest 100 U.S. cities by population. First GOBankingRates found the top 100 cities by population as sourced from the U.S. Census American Community Survey. For each city a number of factors were found including; total population, total households, household median income all sourced from the U.S. Census American Community Survey. The cost-of-living indexes were sourced from Sperlings BestPlaces and by using the national average expenditure costs for all residents, as sourced from the U.S. Bureau of Labor Statistics Consumer Expenditure Survey for all residents. The single-family home value was sourced from Zillow Home Value Index and by assuming a 10% down payment and using the national average 30-year fixed mortgage rate as sourced from the U.S. Federal Reserve Economic Data, the average mortgage rate can be calculated. The average rental cost was sourced from Zillow Observed Rental Index for each city. The average rent cost and average mortgage cost can be used with the average expenditure cost to calculate the total cost of living for renters and homeowners. The cities were ranked to show the cheapest to most expensive cities then sorted by total population to show the cost of living for homeowners and renters in the top 100 cities by population. All data was collected on and is up to date as of July 15, 2024.

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