HotPads Helps Answer The Question: “Rent Or Buy?”

With a new mapping tool released by Hotpads.com, called the rent ratio heat map, users can now quickly and easily determine whether it makes more sense to rent or to buy in a certain area. The tool evaluates each area based on the rent ratio—or ratio of rental pricing to for-sale pricing—and assigns the appropriate heat map color.

While the tool is not perfect, it is a very cool idea that I’m sure will evolve with time. A couple of problems I noted were the comparison properties and the buying costs used to calculate the ratio. In their comparison, they use the number of bedrooms to determine the costs. The problem with this, of course, is that the apartments and other multi-family rentals examined are very different from the homes to which they are being compared. In areas like Manhattan, where single family homes are virtually non-existent, this comparison model makes sense. However, in suburban areas that have a high concentration of single-family homes, things are going to get a little off. Most people in the suburbs would prefer to live in a home rather than an apartment for various reasons. As a result the prices for rental homes tend to be considerably higher than apartments.

Another problem is with the cost they assign to the buy side of the equation. They simply take the cost of the home, but neglect to consider any additional expenses involved in home ownership. This of course includes property taxes, utilities (typically higher than in apartments), maintenance and so on. These costs vary greatly based on which state, and even city, you are in. For example, property taxes in Texas are more than double those in Washington.

This tool is a great idea, and as it evolves and becomes more accurate it will become an incredible resource for people to consult. It is most definitely worth checking out, and you can even use it as a starting block when evaluating neighborhoods, but don’t let it take the place of additional due diligence. This tool is not meant to be the final word on whether a person should actually choose to rent or buy; it is simply meant to be a starting point for them.

Labels: ,

Subscribe to NuWire's free weekly investment newsletter:
  
Your information will not be shared

430 comments:

«Oldest   ‹Older   401 – 430 of 430   Newer›   Newest» July 9, 2020 at 9:07 AM Swati Mishra said...

Thank you for the auspicious writeup. It if truth be told was a enjoyment account it. Glance advanced to more added agreeable from you! However, how can we keep up a correspondence? Digital Marketing Services

July 12, 2020 at 10:58 PM gkcurrantfactory said...

Nice Information Thanks For Sharing I have provided Latest Gulzar Shayari

and Good Night Love Images Good Night Shayari In Hindi Good Night Images Hd

July 12, 2020 at 10:59 PM gkcurrantfactory said...


July 12, 2020 at 10:59 PM gkcurrantfactory said...


July 12, 2020 at 11:00 PM gkcurrantfactory said...


July 12, 2020 at 11:00 PM gkcurrantfactory said...


July 12, 2020 at 11:01 PM gkcurrantfactory said...


July 12, 2020 at 11:02 PM gkcurrantfactory said...


July 15, 2020 at 2:51 AM sudhan said...


July 18, 2020 at 12:08 AM Ethical Hacking Course said...

After reading your article I was amazed. I know that you explain it very well. And I hope that other readers will also experience how I feel after reading your article.
Ethical Hacking Course in Bangalore
Certified Ethical Hacker Course

July 18, 2020 at 12:54 AM Law Assignment said...

Many also call business laws commercial laws. Our Business Law help experts explain business regulations as a part of the civil law field connected to the issues arising between individuals, business organizations and trade institutions, relating to trade, industry and commerce. Both public and private laws comes under its ambit and is one of the most pivotal law disciplines.
Business Law Assignment Help
Business Law assignment
Business Law help
Business Law Homework
Business Law term paper
Business Law thesis
Business Law coursework

July 18, 2020 at 1:04 AM Law Assignment said...


July 18, 2020 at 2:29 AM Ethical Hacking Training said...

Wow! Such an amazing and helpful post this is. I really really love it. I hope that you continue to do your work like this in the future also.
Ethical Hacking Training in Bangalore
Ethical Hacking Training

July 18, 2020 at 3:22 AM Ethical Hacking in Bangalore said...

I am impressed by the information that you have on this blog. Thanks for Sharing
Ethical Hacking in Bangalore
Certified Ethical Hacker Course

July 21, 2020 at 6:42 AM Kevin Petter said...

truck mobile mechanic near me - Mobile mechanic in USA

July 27, 2020 at 5:07 AM Kevin Petter said...

mobile heavy equipment repair near me - Mobile mechanic in USA

July 29, 2020 at 4:19 AM Suman Sharma said...

Thanks for sharing such a piece of wonderful information. Moreover, it is very true that Entertainment company is ruling the world.
There is everything fame, money but first, you need to set-up your brand availability. Promote your brand, gain customers’ trust, present what the audience wants,
and you will be able to rule the entertainment company.
entertainment company







July 30, 2020 at 2:00 AM Suman Sharma said...

Thanks for sharing such a piece of wonderful information. Moreover, it is very true that Entertainment company is ruling the world.
There is everything fame, money but first, you need to set-up your brand availability. Promote your brand, gain customers’ trust, present what the audience wants,
and you will be able to rule the entertainment company.
entertainment company



July 30, 2020 at 2:01 AM Suman Sharma said...

Thanks for sharing such a piece of wonderful information. Moreover, it is very true that Entertainment company is ruling the world.
There is everything fame, money but first, you need to set-up your brand availability. Promote your brand, gain customers’ trust, present what the audience wants,
and you will be able to rule the entertainment company.
entertainment company



August 4, 2020 at 3:10 AM Sam Smith said...

What an informative article. Tell you what I have bookmarked your website for regular checkup. Thank you for taking time to share such a great content. Are you puzzling about who to contact for Nursing Writing Services? Could it be that you are working on a tight budget yet need high-quality nursing-related assignments? Is it the efficiency that you are looking for? Well, with the popularity that the nursing course has gained over the years, there are a lot of gaps to fill in the health sector. Read more on Nursing Essay Writing Services.

August 6, 2020 at 4:37 AM Suman Sharma said...

Thanks for sharing such a piece of wonderful information. Moreover, it is very true that Entertainment company is ruling the world.
There is everything fame, money but first, you need to set-up your brand availability. Promote your brand, gain customers’ trust, present what the audience wants,
and you will be able to rule the entertainment company.
entertainment company


August 6, 2020 at 4:50 AM Suman Sharma said...

Thanks for sharing such a piece of wonderful information. Moreover, it is very true that Entertainment company is ruling the world.
There is everything fame, money but first, you need to set-up your brand availability. Promote your brand, gain customers’ trust, present what the audience wants,
and you will be able to rule the entertainment company.
entertainment company


August 6, 2020 at 10:19 AM Avnika Sharma said...

Thanks for Sharing this information I suggest to keep sharing like this. I also recommend visiting best astrologer

August 6, 2020 at 10:28 AM Avnika Sharma said...

Thanks for Sharing this information I suggest to keep sharing like this. I also recommend visiting best astrologer

August 7, 2020 at 12:36 AM Unknown said...


Thanks for sharing such a piece of wonderful information.it is very true that payafter placement sounds little loud . and i ould prefere you to do visit
this careerthrist for making and shaping up you . Payafter placement
provide you a facility of paying your fees after completing you masters and bachlors both.




August 7, 2020 at 12:42 AM Unknown said...


Thanks for sharing such a piece of wonderful information.it is very true that payafter placement sounds little loud . and i ould prefere you to do visit
this careerthrist for making and shaping up you . Payafter placement
provide you a facility of paying your fees after completing you masters and bachlors both.




August 8, 2020 at 11:37 AM Ishita Bajaj said...

Thanks for Sharing this information I suggest to keep sharing like this. I also recommend visiting best astrologer

August 8, 2020 at 11:55 AM Ishita Bajaj said...

This comment has been removed by the author.

August 10, 2020 at 2:56 AM Unknown said...

Thanks for sharing such a piece of wonderful information.it is very true that payafter placement sounds little loud . and i ould prefere you to do visit
this careerthrist for making and shaping up you . Payafter placement
provide you a facility of paying your fees after completing you masters and bachlors both.





August 10, 2020 at 4:27 AM Suman Sharma said...

hanks for sharing such a piece of wonderful information. Moreover, it is very true that Entertainment company is ruling the world.
There is everything fame, money but first, you need to set-up your brand availability. Promote your brand, gain customers’ trust, present what the audience wants,
and you will be able to rule the entertainment company.
entertainment company



Post a Comment

Home

© 2010 NuWire Investor and NuWire, Inc. All Rights Reserved.