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Buying 45% cheaper than renting in Fairfield County

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A new report by the real estate website Trulia found that across the nation it is 44 percent cheaper to buy a home than it is to rent one. In Fairfield County, it’s a bit cheaper still, at 45 percent, while house hunters in the New Haven metropolitan statistical area can enjoy a 47 percent break if they buy.

Of course, that bargain fluctuates depending on who you are and what you’re looking for. The Trulia team had some pretty strict guidelines for the analysis:

To compare the costs of owning and renting, we assume people will get a 3.5% mortgage rate, reside in the 25% tax bracket and itemize their federal tax deductions, and will stay in their home for seven years. We also assume buyers get a 30-year fixed-rate mortgage and put 20% down. Under all of these assumptions, buying is 44% cheaper than renting nationwide, taking into account all of the costs and proceeds from buying or renting over the entire seven-year period. We also look at alternative scenarios by changing the mortgage rate, the income tax bracket for tax deductions, and the number of years one stays in the home.  Our interactive map shows how the math changes under alternative assumptions. And if you’re interested, check out our detailed methodology which explains our entire approach, step by step.

Looking for the perfect spot to claim as your own? We did a little house hunting of our own and found the most recently reduced prices on homes for sale in every town in Southwestern Connecticut. Check out the slideshow above to see what we found.

Maggie Gordon

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3 Responses

  1. Pearl says:

    How can a housing uptick be credible with no job growth?? The jobs numbers are still inadequate… Housing may grab some momentum, but without solid fundamentals to support it, it could stagnate again… More CT residents are leaving the state than coming in… Defense jobs are at risk… Taxes are among the highest in the nation… Foreclosures are still a great percentage of the market… Our property value is still going down in Fairfield County from last year at this time… I know homeowners who would LOVE to sell, but they are so underwater they have no hope… I’m not being negative just to be a doom-and-gloomer — I just am asking the questions…

  2. Pearl says:

    20% down and a 3.5% mortgage rate??? Pipe dream… First-timers will want that 3 1/2% down payment from FHA… Mortgages back to ‘no skin in the game’ — even Jay Leno the comedian is joking about ‘how well that worked last time’…

  3. Regional Builder says:

    Bethel is an incredible town. Its downtown is nicer than Ridgefield, Newtown, or Wilton. They haven’t messed it up with a bunch of shopping plazas, its more like downtown Westport. There are some great homes available, not just lower priced deals, but homes that compete with the best in lower Fairfield County, in the 5,000 to 7,000 square feet area with plantings and views. My wife is from Greenwich and we fell in love with Bethel. If I were to make a guess on future value, home appreciation will be very strong there. Smart buyers are moving north out of Stamford, Darien, and New Canaan. Much better value and no big-city problems.