Cheaper to Buy Than Rent? In Most Cities, 'Yes'
Americans in 39 of the country’s 50 largest cities are finding it’s cheaper to buy a home than rent one, according to Trulia’s second quarter Rent vs. Buy index. In its index, Trulia compared the cost of buying and renting a two-bedroom apartment, condo, or town home in the 50 largest cities in the country.
When compared to the previous quarter, buying a home has become even more affordable than renting. Trulia found last quarter that in 72 percent of the cities it was better to buy than rent, but this quarter the number has grown to 78 percent of the cities studied.
Rising rents, falling home prices, and low mortgage rates have made home ownership make more financial sense in most areas of the country, according to Trulia.
"With home prices nearing a double dip and more foreclosures expected to flood the housing market over the next two years, the decision between renting and buying a home across most of the country has clearly moved in favor of buying," said Ken Shuman, Trulia's spokesperson, in a statement.
The cities where renting was a less costly option than home ownership were in New York, Fort Worth, Texas, and Kansas City, Mo.
Where It’s Cheapest to Buy vs. Rent
The following is a list of the top 12 cities where it’s cheapest to buy a home than rent.
1. Las Vegas
3. Arlington, Texas
4. Fresno, Calif.
6. Mesa, Ariz.
7. Jacksonville, Fla.
8. Sacramento, Calif.
10. Omaha, Neb.
11. San Antonio
12. El Paso, Texas
Source: “Trulia Reveals Trend Towards Homeownership Where Affordability to Buy Versus Rent Extends to Almost Four in Five Major U.S. Cities,” Trulia.com (April 28, 2011)