Crain’s Chicago Business: The Benefits of Buying Over Renting Are Shrinking as Home Prices Rise

The difference in savings between renting and buying is decreasing in major cities like Chicago.

As home prices continue to rise, the advantages that come with buying over renting are starting to fade. However, according to a new study from Trulia cited by Crain’s Chicago Business, buying is still the better deal in the Chicagoland area.

This spring, owning a median-priced home in Chicago costs about 34 percent less than renting a median-priced apartment. That’s down from this time last year—Trulia notes that ownership was a little over 40 percent cheaper in 2016. And Chicago isn’t the only city in which the difference is noticeable. Chicago’s 6.5 percentage difference is the second-smallest of the nation’s top 10 metropolitan areas.

The advantages that come with buying over renting are expected to continue decreasing. That’s because home prices are still trending higher—the median home value is up from 6.2 percent a year ago, according to Trulia, and the median rent is down 2.8 percent.

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