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U.S. Cheapest Homeownership Market Reports Tampa #5

Business Week Article explains when conditions are favorable to own rather than rent.

Tampa Bay Ranked #5 in their report.

Tampa Metro (Fla.)
Own/rent ratio: 115%
Annual cost to own: $10,823
Annual cost to rent: $9,444

From Channelside

South Florida is has been hit hard by the recession, and home prices in Tampa have taken a dive. The metro was the country’s 19th-largest in 2007, with a population of more than 2.7 million. OSI Restaurant Partners (Outback Steakhouse) and WellCare Health Plans are headquartered here.  The Tampa Bay area also relies on the tourism industry.

The metro areas were ranked based on the annual cost of owning compared to renting. The own/rent ratio represents the annual cost of owning as a percentage of the annual cost of renting. The lower the ratio, the more favorable owning is over renting and in any metro with a ratio below 100%, it’s cheaper to own than rent. To make a fair comparison between owning and renting, annual ownership costs were calculated based on a loan of 100% of the purchase price. (Of course, a down-payment is required for most purchases, but including it in our calculations would have skewed the results by lowering the cost of ownership). We also factored in tax rebates assuming an annual income tax rate of 30%. The ownership costs were calculated using a 30-year fixed mortgage with an interest rate of 5.5% and maintenance fees and property taxes were assumed to be about 3%. The second-quarter rental data, which was provided by REIS, is a blended average of all rental types and includes rent concessions. The second-quarter home value data comes from Zillow.com

Thinking of buying or listing a home for sale in the Tampa Bay Area? Give us a call

 813 784 7744 or email realtyrae@yahoo.com

Rae Catanese, PA    Real Estate Agent

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Written by Rae Catanese, Realtor

Licensed Realtor since 2002, Tampa Bay’s own Rae Catanese regularly gives expert advice and insider tips about the Tampa Bay real estate market via her blog, The Tampa Real Estate Insider. If you are thinking of buying or selling a home in the Tampa, St. Petersburg or Clearwater areas-then this blog is for you. I typically post articles once a week. To make sure you don’t miss my newest posts, you can subscribe here! Have a real estate question? Email me here!

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