According to the National Association of REALTORS®, renting can cost Texans more than seven times that of owning. For the past 10 years, the annual cost of renting has increased an average of 3% and is expected to rise another 4.1% in 2006. At a 3% annual increase, Texas residents who pay $1,000 per month today would see an increase every year that amounts to $137,567 after 10 years, with no wealth accumulation.
By contrast, a Texas resident who purchases a $210,000 home today with a downpayment of $10,000 and a 30-year fixed rate mortgage at 6.5 percent would cost a steady $1,100 per month and yield a net worth of $138,521 after 10 years, assuming an historic 4.5% annual appreciation rate.
Source: National Association of REALTORS®
