Business Insider says Boston is one of the cities where people are better off renting than buying homes.
The conclusion relies on Zillow’ newest metric – the so-called “break-even horizon.” As BI puts it: “The break-down horizon refers to the number of years after which buying a home is more ‘financially advantageous’ than renting one. So, with a longer breakeven horizon it makes more sense to rent. Unlike the price-to-rent ratio this metric includes a whole range of possible costs including mortgage payments, property taxes, utilities costs etc.”
Well, OK. Makes sense. Sort of. But has anyone recently analyzed Boston’s soaring rents? See the post immediately below. Rent prices are quickly getting to the surreal stage here.
Maybe the break-even-horizon formula needs some updating or tinkering. It sure doesn’t feel right amid today’s rental prices.