A new study for the Associated Press, conducted by Marcus & Milichap Real Estate Investment Services, shows the difference between owning a home vs. renting has fallen to a record 20-year low. The study relied on data from the last quarter of 2009. The researchers compared the monthly mortgage payment for a median-priced home with a median-priced rental to come up with a median gap of $256 a month. In some parts of the country, the difference is only $100.
I don’t believe the study considered the tax benefits to a homeowner, just the difference between owning vs. renting. When you throw the tax write-offs into the equation for such things as interest and property taxes, I’m betting the results would show that homeowners actually come out ahead.