The cost of living keeps getting higher, and it can make long term cost-saving decisions more tricky.
The Consumer Price Index continues to show increases in the costs of daily goods and services in the United States, according to the U.S. Bureau of Labor Statistics.
So, while inflation continues to rise in the U.S., is it a good financial decision to bite the bullet and invest in buying your own home here in Wichita? That depends.
Let’s take a look at the differing costs of home ownership and renting in Wichita.
How Expensive is it to Own a Home in Wichita?
The average cost to rent in Wichita is more affordable than the estimated cost of a mortgage, according to data from Zillow.
Zillow reports that the median cost to rent in Wichita is $1,395, a $295 increase since last May.
When it comes to home ownership, Zillow puts the median sale price in Wichita at $245,329.
Plugging that number into a mortgage calculator from NerdWallet, as well as a 10% down payment, shows the median cost of a mortgage in Wichita is $2,071. It includes estimated property taxes and insurance. The monthly payment, of course, would change depending on the homeowner’s down payment, exact mortgage rate and home price.
This means it could cost Wichitans about 48% more to own a home in the city than to rent one.
The monthly cost of homeownership being more expensive monthly is on par with the rest of the United States. According to ABC News, it costs an average U.S. home 38% more per month on a mortgage than if they were renting.
This article written by Lindsay Smith first appeared in the Wichita Eagle. It is shared here in partnership with the Wichita Journalism Collaborative.