To rent or to buy, that is the question. While the decision on which makes more financial sense is dependent on a variety of factors, buying in the end can be much cheaper in the long run. According to a recently released report from Zillow with data from the third quarter of 2015, homeowners in the District spend a median 17.2 percent of their monthly income on their mortgage payment, while renters spend a median 27.2 percent of their monthly income on rent.
Because of how expensive apartments are in Washington, D.C., it's become more difficult for first-time buyers to save up enough money for a down payment. For a median-valued home in Washington, D.C., buyers will need to have saved $71,060 for a 20 percent down payment. The median income in the city is $93,382, reported Zillow. To afford a down payment, first-time homebuyers often have to turn to friends or family for financial help. In 2014, 13 percent of home purchases in the nation were made with loans or gifts from friends or family.
With the graph below, take a look at how other Metro areas in the nation fared in Zillow's latest report:
· Zillow [Official Website]
· Which Is Cheaper in the D.C. Area: Buying or Renting? [Curbed DC]
· Which Is Better: Renting or Buying? See Answers from Experts [Curbed DC]
· D.C. Falls from Fourth to Sixth Priciest Metro Area for Renting [Curbed DC]