In nearly 60% of the country, renting a home is still cheaper than buying one. But for the remaining 40% of the country, including Dayton, OH, buying a home may make the most financial sense, both now and for the long term.
However, it’s worth mentioning that there is no single right solution for everyone. Homeownership is a major undertaking, regardless of the health of the Dayton market. It’s in your best interest to consider the big picture of each option to see what’s most favorable to your finances.
Working with an experienced real estate agent can be invaluable. The seller pays the agent commission fee, so buyers can essentially get the expertise of a real estate agent for free.
In addition, the following information on the Dayton market can help you know what to look for when weighing a buy vs. rent scenario:
Rent vs. Buy in Dayton, OH: A Brief Overview
Like most of Ohio, Dayton is experiencing one of the hottest seller’s markets in the country. This occurs when the supply of available homes can’t keep up with the demand, which can contribute to higher home prices and competitive offers from buyers.
It’s no surprise, though. Home values in Dayton alone have skyrocketed nearly 20% in the past year alone and are expected to climb by another 8.7% within the coming year.
While these numbers might seem daunting to would-be homeowners who are considering buying a home in Dayton, in many cases the mortgage will still be cheaper than it would be to rent a comparable home.
The median home value in Dayton is $53,000, which is more than four times less than the national average. On a 30-year mortgage with 3% down and a 4.5% interest rate, this results in a monthly mortgage payment of just $260. Compare this to the median rent price in Dayton, which is $750 per month, and the decision on whether to rent vs. buy looks like a no-brainer.
However, the monthly mortgage payment is only part of the picture (albeit a large part). The mortgage isn’t a bottom-line cost for homeowners, but rather a single line item in a lengthy list of expenses that could affect your decision to buy
Understanding the True Costs of Dayton Homeownership
Aside from a monthly mortgage payment, homeowners assume numerous other costs that can quickly add up to more than what you might pay in rent. As a renter, you never have to worry about seeing a separate bill for property taxes, homeowner’s insurance, maintenance, repairs, or landscaping. These items are paid for by your landlord, though you indirectly help to pay for them via your rent.
But as a homeowner, all of these costs fall to you. When an appliance breaks or a light goes out, you’re paying for these replacements out of pocket. Many seasoned homeowners recommend setting aside money to cover surprise expenses so you aren’t caught off guard later. You should do everything possible to maintain your home so it can retain its value when it comes time to sell.
In short, buying a home can be a major financial investment that you must be prepared for. Otherwise, renting until you’re financially stable and ready to buy might be the best option.
Dayton Real Estate Outlook
Many factors affect the price of real estate, including the local unemployment rate, job growth, current events, and federal interest rates. The good news is that Dayton’s real estate market is undoubtedly healthy right now, and it looks to remain this way for years.
Though Dayton has an unemployment rate that’s higher than the national average, the city’s job market has increased by 0.7% in the past year and is predicted to increase by 27.6% over the next 10 years. The area has seen notable growth in recent years, both in population and industry, which bodes well for the home values in the future.
The Bottom Line
While buying a home in Dayton could give you more bang for your buck in the long run, it’s important that you feel comfortable accepting the additional financial obligations that come with owning a home. Being house poor is a surefire way to regret your decision, and it could prevent you from recognizing the full financial benefits of ownership in the future.
Are you ready to start searching for your new Dayton home? The first step is to connect with an experienced local real estate agent for support and guidance throughout the process.
Clever Partner Agents are top-rated, full-service agents in your local market that will walk with you every step of the way. Our Partner Agents can help you find homes that fit your specifications, negotiate offers, and provide insight throughout the closing process. And, they may even help you uncover additional cost savings to bring you closer to owning your next home.
Connect with Clever today for a no-obligation consultation and start searching for your Dayton home!