If you’ve been renting for a while, you’ve probably wondered when the time will come when buying makes more sense than continuing to rent. Well, good news—recent data suggests that time might be now! According to a recent Zillow study, in 22 of the 50 largest metro areas across the country, monthly mortgage payments are now lower than rent (see chart below for the numbers). While Brookings, South Dakota, isn’t one of these major metro areas, the trends we’re seeing nationwide could mean that buying a home in our area may soon become a more affordable option.
The Current Market: What’s Changing?
As mortgage rates ease from their recent peak and home prices stabilize, the affordability of purchasing a home is improving across the board. In many places, it’s becoming less expensive to own than to rent.
For the past few years, skyrocketing prices and high mortgage rates may have made buying a home feel out of reach. But now, with the market cooling off and inventory rising, conditions are starting to favor buyers again. If you’ve been sitting on the sidelines, waiting for a better moment to jump into homeownership, now might be the time to run the numbers.
Is Brookings Following National Trends?
You might be wondering if Brookings is seeing these same changes. While we don’t have the exact numbers comparing rent vs. mortgage payments in our area, there’s no doubt that local housing market conditions are shifting, just as they are in other parts of the country. As more homes come on the market and mortgage rates stabilize, the cost of buying a home in Brookings could start looking much more attractive.
Here’s where working with a local real estate expert comes in handy. We at the Brookings Home Team keep a close eye on the Brookings market and can help you understand how these national trends apply here. If affordability is improving nationally, chances are, Brookings and surrounding areas like Volga, Aurora, and Elkton could be next.
Let’s Talk Monthly Costs: Mortgage vs. Rent
It’s important to understand that the Zillow study compares monthly rent to the principal and interest portion of a mortgage payment—not the full amount that includes things like taxes and insurance. When you own a home, you also have to budget for homeowner’s insurance, property taxes, maintenance, and utilities.
But before you get too worried about those additional costs, don’t forget that renting comes with extra fees too. Things like renter’s insurance, utilities, parking fees, and other costs can really add up. And the real kicker is that when you’re renting, all that money goes to your landlord—none of it builds your personal wealth. That’s where homeownership pulls ahead because over time, you build equity in your home, giving you the chance to grow your wealth in a way renting can never match.
So yes, it’s important to crunch the numbers and factor in every cost, but the big picture could show that now is a great time to start building long-term wealth by owning your home.
Expert Insight: Why Buying Now Could Be Your Best Move
According to Orphe Divounguy, Senior Economist at Zillow, this shift in the market offers a real opportunity for potential buyers:
“… for those who can make it work, homeownership may come with lower monthly costs and the ability to build long-term wealth in the form of home equity — something you lose out on as a renter. With mortgage rates dropping, it's a great time to see how your affordability has changed and if it makes more sense to buy than rent.”
This quote highlights a key takeaway—if your finances allow it, homeownership is not only about finding a place to live, but also about securing your financial future. And with mortgage rates dropping and homes becoming more affordable, it’s worth taking a closer look at whether buying a home makes sense for you right now.
The Brookings Advantage: Why Timing Matters
Even if Brookings hasn’t yet made the list of cities where buying is cheaper than renting, don’t wait until it does. By the time everyone else catches on, you could be competing with other buyers for limited inventory. The best way to stay ahead of the curve is to talk with a local agent who knows the Brookings real estate market inside and out.
At the Brookings Home Team, we can help you understand exactly how much house you can afford based on today’s rates and inventory. And with more homes coming on the market in Brookings and nearby towns like Volga and Aurora, you could find that the perfect home is already out there waiting for you. It’s all about being prepared and having the right information in hand.
Bottom Line: Let’s Do the Math Together
If you’re tired of renting and ready to explore whether buying a home in Brookings is the right move for you, let’s connect. Together, we can run the numbers and see how your affordability has changed in this evolving market. Whether it makes sense to buy now or wait a little longer, getting the conversation started is the first step.
And remember, owning a home isn't just about having a place to call your own—it’s about building wealth, securing your financial future, and investing in a community like Brookings, where you can truly put down roots.
Posted by Shane Andersen on
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