Buying a house is a huge lifetime commitment, and the decision is often fraught with questions upon questions and one pro/con list after another. How can you really know what the best choice is? Who are the people who choose to buy and who are the people who choose to rent?
According to Forbes, in March, buying was 38 percent cheaper than renting nationally, and as much as 66 percent cheaper in Detroit, but as little as 5 percent in Honolulu. The New York Times has an application to show the specifics of buying vs renting based on particular circumstances.
After so much research, sometimes you just need to know what other people in your circumstances facing the same question did. Get a peek into other people's decisions by seeing the median incomes of those who chose to buy versus those who chose to rent compared to the median income in general in10 biggest cities in Illinois, from Area Vibes and the percent of people living in their own homes versus the percent of people living in rented homes, based on U.S. Census Bureau data according to Home Facts.
For comparison, the median household income in Illinois according to Area Vibes is $57,848, the median household income of homeowners is $66,093 and the median household income for renters is $36,332. Nationally, the median household income is $52,328, the median household income for homeowners is $63,664 and the median household income for renters is $35,685.
In every one of Illinois 15 biggest cities, median household income of people who owned homes was higher than the median household income for the city in general, which was in turn higher than the median household income for people who chose to rent, even though renting is actually more expensive than buying in the long run, according to Forbes. Accumulating the cash for a down payment, however, would generally be more expensive than renting.
Chicago realtor Emily Sachs Wong, owner and broker of Emily Sachs Wong, Inc. within @Properties, said there are several factors to consider whether to buy or rent. Ask yourself: Do you have the time to put into maintenance of a house? Do you plan on staying in a house long enough to build equity? She said even if buying a house might be a bit more expensive, it can be better to own as an investment and to customize a home. But it all comes down to money in the end:
"If they have a down payment is the number one decision maker," she said.
Based on these numbers, is your household income closer to those who buy or rent in your area? Does that match with what you have chosen to do for your living arrangements?
Renting vs buying information in five of Illinois' biggest cities:
Cicero
Owner-occupied housing units: 48.4 percent
Renter-occupied housing units: 51.6 percent
Median household income: $43,799
Median household income of homeowners: $55,106
Median household income of renters: $34,254
Waukegan
Owner-occupied housing units: 49.9 percent
Renter-occupied housing units: 50.1 percent
Median household income: $47,987
Median household income of homeowners: $67,117
Median household income of renters: $35,914
Elgin
Owner-occupied housing units: 65.7 percent
Renter-occupied housing units: 34.3 percent
Median household income: $57,216
Median household income of homeowners: $73,049
Median household income of renters: $40,818
Peoria
Owner-occupied housing units: 90.3 percent
Renter-occupied housing units: 54.9 percent
Median household income: $45,863
Median household income of homeowners: $60,312
Median household income of renters: $25,104
Springfield
Owner-occupied housing units: 63.9 percent
Renter-occupied housing units: 36.1 percent
Median household income: $47,209
Median household income of homeowners: $61,259
Median household income of renters: $30,174
See how many people are renting vs buying for Illinois' five biggest cities, including Rockford and Chicago, at Reboot Illinois.
