The National Low Income Housing Coalition and the Center for Economic and Policy Research have named DC and the surrounding metropolitan area as one of 34 cities where it is better to rent than to buy in the current market.
Released in May, the report "Ownership, Rental Costs, and the Prospects of Building Home Equity" compared ownership and rental costs in 100 metropolitan areas and made projections for the prospects of building home equity in those areas... The report predicts that buyers in the DC metro area looking to sell in the next four years could see a loss of $81,000 in equity. The study focuses on low priced homes (ones that cost 75% of the median price in that market) and assumes that affordable homes cost no more than 15 times their annual market rent.
We rent because we can't afford to buy in our current neighborhood which has always been a bit depressing. We had been eyeing the falling prices thinking it might be time to make the plunge into ownership, but this report makes us wonder if we'd be better off waiting. We're interested in hearing from you about your thoughts on this (or similar reports). Are we the only people left who still rent in DC?
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