The horizon also factors in home equity growth

Zillow’s Breakeven Horizon incorporates all costs associated with buying and renting, including upfront payments, closing costs, anticipated monthly rent and mortgage payments, insurance, taxes, utilities, maintenance, and renovation costs. The horizon also factors in home equity growth, for buyers, and, for renters, income earned if they invested the same amount of money into an interest bearing account. It also factors in historic and anticipated home value appreciation rates, rental prices and rental appreciation rates..

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