Is it Cheaper to Rent than to Buy in Jacksonville's Intown Neighborhoods?

In many cities in the US the answer to that question is "no." Jacksonville's Intown Neighborhoods are definately still buyer's markets so I decided to check our housing stock prices against the rental sales to see if a nice decent home can be purchased for what the median rental rate was in each of the neighborhoods.

In Springfield, Riverside, Avondale, St. Nicholas, and Murray Hill the median rental price is between $800-$1000. This would be the equivalent of about a $100,000 home purchase (depending on down payment, interest rate, etc). In San Marco the median rental rate is around $1200, the equivalent of around a $120,000 home purchase. I have to admit I was skpetical on what each neighborhood has to offer under $100,000 and $120,000, but I was very pleasantly surprised. There are many great homes on the market that do not appear to need a lot of fixing up, which can be overwhelming for a first time home buyer. Many of these homes, in fact, have already been renovated and updated and would be great starter homes.

This is just one of about a million indicators suggesting that you should be buying a home if you have the credit score necessary to get a mortgage. Other indicators include: interest rates for home loans are down across the board, and adjustable-rate mortgages in particular are looking very attractive to homeowners who might not be in the house for the long haul. And while there are some justified fears that low consumer confidence could drive prices even lower, there’s also evidence that the market is starting to stabilize, especially on the local level.

Over the long haul real estate is an investment. Buying now, when so many indicators favor buyers, can save a potential homeowner lots of money that may otherwise be thrown away on a rental that they could be owning and building equity in over the years - maybe even turning their first home into a rental property when they are ready to move up into a larger home.

I will be putting out the 3rd quarter market update at the end of September in my newsletter. Comparing the Intown markets this year to last year is a good indication of which markets are stablizing. If you do not receive the newsletter, email me