/biz/ - Business & Finance

>>50729798
Home ownership costs around 3% of the value of the home per year, factoring in mortgage interest, utilities, property tax, and proper maintenance. This means you need the home to appreciate in value 3% per year to break-even as an investment. Renting costs around 5% of the value of the home per year. This means prices must fall at least 2% in 12 months in order for renting to be equivalent to owning. If prices fall more than 2%, then renting is a better 'investment' than buying.

Do I think prices will fall by at least 2% in the next 12 months? Consensus at this point is for prices to drop closer to 10%.