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Not Buying a Home Could Cost You $65,000 a Year

Renters are missing out on savings in most metros
Santa Cruz, Calif.

Santa Cruz, Calif.

Photographer: Walter Bibikow/JAI/Corbis

Not buying a home right now will cost you, because home prices and interest rates are going to rise. Many renters would like to own, but they can’t afford down payments or don't qualify for mortgages. Those two conclusions, drawn from separate reports released this week, sum up the housing market dilemma for many young professionals: Buyers get more for their money than renters—but most renters can’t afford to enter the homebuying market.

The chart below comes from data published today by that estimates the financial benefits of buying a home based on projected increases in mortgage rates and home prices in local housing markets. Specifically, it shows the amount that buyers gain, over a 30-year period, over renters in the country's largest metropolitan areas.