THE BASIS POINT

Mortgage vs. Rent Payments In Zillow’s 4 Hottest & Coldest Cities

You can see why some cities are appealing when monthly payments of buying and renting are are similar in 5 of these 8 cities.

Zillow just surveyed a panel of 100+ economists and real estate experts on 2020 home value growth in 25 large U.S. markets. Below are the top 4 markets that panelists expect to outperform and underperform. Below I’ve compiled home values, mortgage vs. rent payments, and other key stats for each of these hottest & coldest cities of 2020.

You can see why some cities are appealing when mortgage vs. rent payments are are similar in 5 of these 8 cities. Also some of these hot cities have improving job markets and incomes. Interesting stuff. Please reach out @thebasispoint with comments and questions. And see reference link below for the full list of cities.

ZILLOW’S TOP 4 CITIES EXPECTED TO OUTPERFORM IN 2020

1. Austin

– Median home value: $388,065
– Home values up 4.7% over past year
– Zillow predicts 2.8% rise within next year
– Median list price per square foot: $230
– Median price of homes currently listed: $400,000

AUSTIN MORTGAGE VS. RENT PAYMENTS
– Mortgage* based on median home value & 10% down: $2,183
– Median rent: $1,772

2. Atlanta

– Median home value: $287,054
– Home values up 2.3% over past year
– Zillow predicts 1.0% rise within next year
– Median list price per square foot: $234
– Median price of homes currently listed: $324,900
– Median price of sold homes: $254,000

ATLANTA MORTGAGE VS. RENT PAYMENTS
– Mortgage* based on median home value & 10% down: $1,650
– Median rent: $1,800

3. Charlotte

– Median home value: $245,618
– Home values up 4.9% over past year
– Zillow predicts 4.5% rise within next year
– Median list price per square foot: $153
– Median price of homes currently listed: $295,000
– Median price of sold homes: $237,700

CHARLOTTE MORTGAGE VS. RENT PAYMENTS
– Mortgage* based on median home value & 10% down: $1,432
– Median rent: $1,500

4. Nashville

– Median home value: $280,792
– Home values up 3.2% over past year
– Zillow predicts 2.7% rise within next year
– Median list price per square foot: $190
– Median price of homes currently listed: $329,000
– Median price of sold homes: $284,200

NASHVILLE MORTGAGE VS. RENT PAYMENTS
– Mortgage* based on median home value & 10% down: $1,653
– Median rent: $1,700

ZILLOW’S TOP 4 CITIES EXPECTED TO UNDERPERFORM IN 2020

1. San Francisco

– Median home value: $1,373,630
– Home values up 0.1% over past year
– Zillow predicts 0.7% rise within next year
– Median list price per square foot: $1,073
– Median price of homes currently listed: $1,325,000
– Median price of sold homes: $1,336,800

SAN FRANCISCO MORTGAGE VS. RENT PAYMENTS
– Mortgage* based on median home value & 10% down: $7,626
– Median rent: $4,495

2. San Jose

– Median home value: $995,714
– Home values down 8.1% over past year
– Zillow predicts 1.8% fall within next year
– Median list price per square foot: $620
– Median price of homes currently listed: $929,000
– Median price of sold homes: $918,900

SAN JOSE MORTGAGE VS. RENT PAYMENTS
– Mortgage* based on median home value & 10% down: $5,528
– Median rent: $3,395

3. Los Angeles

– Median home value: $713,617
– Home values up 4.6% over past year
– Zillow predicts 3.5% rise within next year
– Median list price per square foot: $550
– Median price of homes currently listed: $859,000
– Median price of sold homes: $722,800

LOS ANGELES MORTGAGE VS. RENT PAYMENTS
– Mortgage* based on median home value & 10% down: $4,206
– Median rent: $3,600

4. Sacramento

– Median home value: $344,930
– Home values up 4.7% over past year
– Zillow predicts 4.5% rise within next year
– Median list price per square foot: $235
– Median price of homes currently listed: $339,850
– Median price of sold homes: $322,000

SACRAMENTO MORTGAGE VS. RENT PAYMENTS
– Mortgage* based on median home value & 10% down: $2,071
– Median rent: $1,812

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Reference:

– *I calculated estimated mortgage payments using today’s rates (and rates change daily), and payments include principal, interest, taxes, insurance, and mortgage insurance (which is most often required if financing more than 80% of a home’s value with a single loan). The jumbo mortgage estimates for San Francisco and San Jose don’t include mortgage insurance, but do include a rate premium. Jumbo mortgage structures vary by lender, but figures shown will end up similar for most jumbo borrower profiles.

Economists & Real Estate Experts Give Zillow 2020 Expectations Of 25 U.S. Markets

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