Rent vs buy in North Carolina
With today's numbers over 7 years, renting comes out ahead in 12 of the 22 cities of 50,000+, buying wins in 6, and 4 are toss-ups.
Renting or buying in North Carolina's cities
| City | Verdict | 7-year result | Break-even (up to 30 yrs) | Typical home | Rent /mo |
|---|---|---|---|---|---|
| Charlotte | Rent | renting wins by $30k | year 13 | $389,648 | $1,729 |
| Raleigh | Rent | renting wins by $61k | year 24 | $424,663 | $1,572 |
| Jacksonville | Toss-up | toss-up, renting ahead by $3k | year 8 | $261,539 | $1,421 |
Verdicts come from our method for rent vs buy, which assumes 20% down over 7 years. The data behind them is the Zillow Home Value and Observed Rent indexes.
Our North Carolina view
Over 7 years, renting comes out ahead in 12 of North Carolina's 22 largest cities. Buying wins in 6 cities, while 4 are close calls. Wherever home prices outrun monthly rent, renting leaves you ahead. In Charlotte, monthly rent is $1,729, while a typical home costs $389,648. Renting is ahead by $30k in that city, and year 13 is when you finally break even. A Raleigh home costs $424,663 with rent at $1,572, so renting leads by $61k, and buying catches up only in year 24.
Cheaper cities turn the math around. A typical home in Fayetteville costs $221,511, and monthly rent runs $1,362. Over 7 years, buying leads by $9k and starts paying off for you in year 6. Greensboro comes down to a close race. A $260,573 home and $1,395 in rent are $3k apart, breaking even in year 8.
We see mild statewide costs as well, whether you buy or rent. A typical home is worth $332k. Home prices grew 8.1% a year during the past 10 years, outpacing the long-term rate of 4.4% a year. Property tax is 0.66% compared with the US 0.94%, and homeowners insurance costs $1,213 a year versus $1,308. Renting households account for about 33%, under the US 35%, and the median monthly rent of $1,228 comes in under $1,413 across the country.
Our take: let local prices guide your decision in North Carolina. If you'll stay 6 years or more, buy in a cheaper city; rent in pricey markets.