Rent vs buy in Virginia
Today's numbers over 7 years put renting ahead in 7 of the 12 cities of 50,000+, buying ahead in 3, with 2 toss-ups.
Renting or buying in Virginia's cities
| City | Verdict | 7-year result | Break-even (up to 30 yrs) | Typical home | Rent /mo |
|---|---|---|---|---|---|
| Newport News | Toss-up | toss-up, buying ahead by $2k | year 7 | $291,926 | $1,593 |
| Suffolk | Toss-up | toss-up, renting ahead by $1k | year 8 | $386,848 | $2,028 |
We calculate each verdict with the rent vs buy method for a 20% down payment over 7 years. Sources: Zillow Home Value and Observed Rent indexes.
What we make of Virginia
Across Virginia's 12 biggest cities, renting beats buying in 7 of them over 7 years. That gap comes from high home prices. Alexandria shows a home price of $662,843 and monthly rent of $2,275. Renting saves you $106k, and buying doesn't break even in 30 years. A $361,844 home in Richmond rents for $1,628. Renting saves you $24k over 7 years, and buying doesn't break even until year 12.
There are 3 cities where buying wins; 2 others we count as a tie. The math flips where home prices stay low compared with rent. Hampton has a typical home price of $279,178, with rent at $1,690 a month. Over 7 years, buying beats renting by $18k, and you break even in year 5. A $266,504 home in Portsmouth rents for $1,642, so buying wins there too by $18k, breaking even in year 5.
If you can handle a $412k typical home value, these statewide numbers help. Property tax comes to 0.73%, under the 0.94% US rate. You pay $1,183 a year for homeowners insurance, compared with $1,308 nationally. Since 1995, home prices have grown 4.6% a year, and 6.1% a year across the last 10 years. At the same time, 33% of households rent, which is under the 35% US mark, and the median monthly rent is $1,579 against $1,413 nationwide.
Our take: in Virginia's pricier cities, choose renting unless you'll stay until year 9 or year 12. If you'd rather buy sooner, go with a cheaper city such as Hampton or Portsmouth, where the break-even point lands in year 5.