In 74% of U.S. cities, owning a home is more affordable than renting, says a recent report from online real estate resource Trulia. Trulia’s Rent vs. Buy Index compares the cost of buying and renting a two-bedroom apartment, condo or townhouse in America’s 50 largest cities and finds that overwhelmingly, owning a home is a better bet.
The top five most affordable cities for homeownership include those where home values have lost substantially: Las Vegas; Detroit; Mesa, Arizona; Fresno, California and Arlington, Texas. Alternately, those where renting is more affordable than buying have suffered less in terms of home values: New York City; Fort Worth, Texas; Omaha; Seattle; and San Francisco.
In Las Vegas, the best place to buy, the price-to-rent ratio has been consistent at 6. In Detroit, the price-to-rent ratio has fallen from 12 in January to 7 in July.
View the Trulia index findings.
Written by Elizabeth Ecker
