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In Virginia, Should You Buy or Rent? A Look Into the Numbers

AP Photo / Marcio Jose Sanchez, File

Is buying a home always better than renting a home? Experts say it depends on how long you’re staying.

Roanoke is the best place to buy a home in Virginia, according to a new report from a financial technology company known as Smart Assets. A.J. Smith is vice president of financial education.

“We looked specifically at the break-even year, when you would recoup the cost of buying a home versus just renting a home. There are some upfront costs associated with buying home, down payment and closing costs, those sorts of things.”

That break-even year came quickest in Roanoke and Amherst and Colonial Heights — places where the cost of buying a home isn’t as outrageous as it is in Northern Virginia or Hampton Roads. Smith says the major metropolitan areas did not register as top places to buy because it takes so long to break even.

“Sometimes people are thinking well I'm paying this much in rent and I have a one bedroom apartment and I want to go buy a five bedroom house, you know? It’s really important to look at your own break-even year and whether it makes sense for you and your family to rent or buy right now.”

In Roanoke City, the breakeven point is just one year. Compare that to Williamsburg, where the breakeven point is four years. Or Arlington, where the break-even point is five years.

This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.

Michael Pope is an author and journalist who lives in Old Town Alexandria.