Renting vs. Buying Real Estate: See the Cost Difference in These 4 Nevada Cities
As home prices continue to rise, along with higher mortgage rates, home insurance costs and other housing expenses, it may make more financial sense to rent than to buy a home. But this isn’t the case everywhere, including some of the most populated cities in Nevada.
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According to an analysis from CBRE, a firm that tracks real estate prices, it costs households 38% more, on average, to buy a home than to rent. The analysis found that this gap between buying and renting will continue to be a challenge for hopeful homeowners for at least the next five years.
The biggest factor behind these unaffordable home prices is the nationwide housing shortage. According to the CBRE report, there’s an estimated shortage of 3.8 million housing units in the U.S., particularly concerning single-family homes and small multi-unit residences.
Renters are also severely cost-burdened. A report from the Harvard Joint Center for Housing Studies found that rents across the nation have skyrocketed 26% since early 2020. Also, half of all tenant households were cost-burdened as of 2022, meaning they spend more than 30% of their household income on housing and utilities.
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Nevada Housing Market Seeing Price Surges
In Nevada, even some six-figure earners struggle to afford a house in Washoe County, where home prices have surged 46% since 2019 to $580,000. According to an NBC News index, the county ranked in the top 200 out of 1,300 measured when it comes to difficulty buying a home.
GOBankingRates recently conducted research to determine the difference in prices between renting and buying a home. Out of the four cities located in Nevada in the analysis, renting was a cheaper option in all of the cities. Here’s a cost breakdown of renting versus owning real estate in Las Vegas, Henderson, Reno and North Las Vegas.
Las Vegas
Total population: 644,835
Median household income: $66,356
Average home value: $426,020
Average monthly mortgage payment: $2,523
Average monthly rent: $1,792
Homeowner monthly cost of living: $4,688
Renter monthly cost of living: $3,958
Cheaper option: Renting
Henderson
Total population: 318,063
Median household income: $85,311
Average home value: $485,812
Average monthly mortgage payment: $2,877
Average monthly rent: $1,925
Homeowner monthly cost of living: $5,007
Renter monthly cost of living: $4,055
Cheaper option: Renting
Reno
Total population: 265,196
Median household income: $73,073
Average home value: $551,222
Average monthly mortgage payment: $3,264
Average monthly rent: $1,960
Homeowner monthly cost of living: $5,211
Renter monthly cost of living: $3,907
Cheaper option: Renting
North Las Vegas
Total population: 264,022
Median household income: $71,774
Average home value: $406,543
Average monthly mortgage payment: $2,407
Average monthly rent: $1,944
Homeowner monthly cost of living: $4,577
Renter monthly cost of living: $4,114
Cheaper option: Renting
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This article originally appeared on GOBankingRates.com: Renting vs. Buying Real Estate: See the Cost Difference in These 4 Nevada Cities