June 29, 2018 • Local News
El Paso Times: El Paso one of best places in US to buy home compared to renting: SmartAsset
El Paso is one of the better markets in the United States to buy a home, according to a study by the financial technology company SmartAsset.
The Sun City ranks as the 36th best metropolitan area with more than 200,000 people in the U.S. (there are 207 such areas) where buying beats renting, according to the study. It also showed it takes 2½ years on average for the cost of renting to exceed the cost of buying a home over time.
Those numbers didn't surprise El Paso's Director of Economic Development Jessica Herrera.
"When you look at affordability, El Paso is one of the top markets," Herrera said. "Looking at owning versus renting, it typically depends on location and how new the apartment is, what amenities it has. But building equity, you're not doing that if you're renting.'
"El Paso for a long time has been an affordable market for single-family homes. This is an affordable city."
According to the methodology of the study, it compared costs of buying versus renting for a household earning $100,000 a year, which, according to Herrera, is more than double the average household income in El Paso.
Conversely, median home prices nationally are more than double what they are in El Paso. The median home price nationally is around $312,400; Herrera said the median home price in El Paso is $154,000.
For the buy scenario, the study made the following assumptions: a mortgage rate of 4½ percent, closing costs of $2,000 and a down payment of 20 percent.
Per the study, the best city in America to buy is Gary, Ind., followed by Columbia, S.C. No Texas cities ranked in the top 10.
Share this Article
