rent buy boston

  • % saved buying: 30%
  • Median home price : $435,000
  • Median rent: $2,550

One of the most densely-packed cities in the U.S., Boston's coastal location means that developers have limited space to build on.

As a result, the city has some of the highest housing prices in the nation, a median of more than $400,000, according to Trulia. Rents are also stratospheric at more than $2,500 a month for a three-bedroom home.

Low mortgage rates currently make buying a better bet than renting, but it's a closer call in Boston than in most of the other major cities. The savings advantage to buying in Boston is also shrinking. Last year, buyers were projected to save 40% over renters, thanks to lower mortgage rates and home prices.

First published March 3, 2014: 12:09 PM ET
Source: Trulia
In order to get a more accurate comparison, Trulia estimated sale prices and rents for similar homes in similar neighborhoods, instead of using the average sale price or rental rate. It further calculated the initial total monthly costs of owning and renting, including maintenance, insurance and taxes, as well as future costs of owning and renting, such as price and rent appreciation and inflation. Trulia also included one-time transactional costs, including down payments, sales proceeds and security deposits. It assumes that buyers get a 30-year fixed mortgage with a 4.5% rate and put 20% down and that residents stay in their home for at least seven years.

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