Low interest rates and falling home values have made home ownership make more financial sense than renting in most major cities, according to Trulia’s Summer Rent vs. Buy Index.
Trulia found that buying a home is cheaper than renting in 74 percent of the country’s 50 largest cities. Trulia compared the cost of buying and renting a two-bedroom apartment, condo, or townhouse in the nation’s 50 largest cities.
Buying a home particularly in cities plagued by foreclosures proves to be much cheaper than renting, according to Trulia. Below are the top five places where buying beats renting by the most, as well as the few cities where renting may make more sense.
Top 5 Cities Where Buying Beats Renting
1. Las Vegas
3. Mesa, Ariz.
4. Fresno, Calif.
5. Arlington, Texas
Top 5 Cities Where Renting is Cheaper Than Buying
1. New York
2. Fort Worth, Texas
3. Omaha, Neb.
4. Seattle, Wash.
5. San Francisco, Calif.
Source: “Home Ownership Beats Renting in 74 Percent of Major U.S. Cities,” Trulia (Aug. 16, 2011)