Thursday, August 6, 2009

Ownership Costs vs. Renting: Report Says Renting Is Smart Choice, Including Portland Metro Area.

Center for Economic and Policy Research has new paper HERE.

For Portland metro area, I constructed the table below using data in report:

Measure Before Taxes After Tax, 15% Bracket After Tax, 25% Bracket
Median Home Price 06-07 $283,800 $283,800 $283,800
Monthly Ownership Costs $1,542 $1,457 $1,400
Monthly Fair Market Rent $809 $809 $809
Monthly Savings from Rent $733 $648 $591


(Results are highly dependent on accuracy of values selected for comparison;I have not attempted to analyze the accuracy of the values selected. I did note that rent base used was for 2 BR FMR, which may be less than typical size/quality than a prospective homeowner might be willing and able to pay).

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