PROVIDENCE – Providence County is the best market for buyers, according to SmartAsset’s third annual study comparing average rent and home prices across the country.
The financial technology website said this week that Providence County has the shortest “break even” time at 2.5 years; the break even time is when the total costs of renting become greater than the total costs of buying.
To come up with its findings, SmartAsset said it compared the total costs of buying and renting a typical home or rental in each county, for a household earning $100,000 a year.
For the “buy” scenario, it assumed a mortgage rate of 4.5 percent, closing costs of $2,000, and a down payment of 20 percent.
For example, in Providence County, the average monthly mortgage payment is $836, while the average monthly rent payment is $1,335. The average home price is $317,871.
Following Providence County, Kent County was next on the list with a break even period of 2.7 years. Newport County has a break even period of 3.3 years, and Bristol County, 3.6 years. Washington County has the longest break even period at 5.2 years.
And although Providence County topped the list in Rhode Island, its rank falls to No. 1,490 when all U.S. counties are considered. Allegany County in New York ranked first nationally for its break even period of 0.1, SmartAsset said.
Lori Stabile is the PBN web editor.
