Updated about 2 years ago on . Most recent reply
3 Raleigh NC Suburbs Where Owning is Cheaper Than Rent
I find this topic super interesting because it used to be that owning was nearly always cheaper or equivalent to rent. Now it seems nearly impossible in most cities. Maybe in the midwest?
There may be more as you go further out from Raleigh or into Durham - but these 3 stood out to me as being cheaper than or equivalent to rent while still being close enough to commute into Raleigh for work and fun. I'm using single family homes on this one btw.
Wendell: $382k/$2200 vs $2250 rent
Zebulon: $325k/$2000 vs $1900 rent
Clayton: $330k/$2000 vs $1900 rent
Let's address the elephant in the room. Only Wendell was actually "cheaper" on paper. BUT....
1) These are averages. You can find super affordable homes here below the median home price that beat average rent in these areas.
2) If you factor in principal paydown, aka the amount of each monthly mortgage payment that goes back to you in the form of equity, AND the opportunity for appreciation, as Raleigh is expected to grow substantially over the next few years thanks to big corporations and swarms of people moving into the area.... you'll find that the math works our quite favorably for owning a home versus renting.
3) When you factor in rate incentives with new construction homes in these areas may be even cheaper. For example, I have seen brand new homes for average market price or lower in Wendell with a fixed 5% rate. Now instead of paying $2200 to rent a used home, you get to own a brand new home for $1900.
Now will these appreciate as fast as other parts of Raleigh? Probably not. But if you're looking to beat rent, get *closer* to breakeven or even cashflow (depending on rent strategy) then definitely check these out and reach out anytime with questions.