Rent vs buy in Delaware

The Delaware view

Only 1 city in Delaware has 50,000+ people, and the numbers we see there are close. In Wilmington, rent runs $1,757 a month, and a typical home costs $327,252. Over 7 years, renting comes out ahead by $6k. Buying won't break even for you until year 8. The typical home value across the state jumps to $405k. So buying outside the city means a bigger price tag.

After you own a place, your yearly bills come out lower than in most states. Property tax here comes to 0.50%, well under the 0.94% US rate. Your homeowners insurance also gives you a break. For coverage, you pay $965 a year, compared with a US average of $1,308 a year. Each month, more cash stays in your pocket than for buyers elsewhere. If you stay put, those smaller bills help make up for the $405k price.

Steady price growth also helps if you hold on to a home. Over the long run, we've seen home prices in the state grow 4.1% a year. In the last 10 years, they grew at a faster rate of 6.0% a year. Still, renting is smart if you don't plan on staying for 8 years. In Delaware, 27% of households are renters, which is 108,655 households, less than the US share of 35%. Here the median rent, meaning the middle price for all renters, is $1,401 a month; nationwide it's $1,413 a month.

Our take: for Delaware, what matters is how long you'll stay in 1 spot. If you'll be gone within 7 years, rent. If you stay until year 8, buy and let the low taxes and insurance pay off.