Buying Still Beats Renting in Most Markets

Trulia recently released its Winter 2012 Rent vs. Buy Index, which tracks whether it is more affordable to rent or buy a home in America’s 100 largest metropolitan areas. Based on asking prices for rental units and for-sale homes on Trulia.com between December 1, 2011 and February 29, 2012, the index reveals the relative cost of renting versus buying for similar homes in similar neighborhoods.

Buying Trumps Renting in 98 Out of 100 Major Metros after years of home price declines and tightening rental markets, homeownership is now more affordable than renting in all but two of the 100 largest markets – even in expensive real estate markets such as New York, Los Angeles and Boston. Only in Honolulu and San Francisco is renting often a better deal than buying. However, buying a home in these markets might make sense for people who plan to stay in their next home for at least five years and can benefit from the mortgage-interest tax deduction. (Above Photo: Construction recently resumed on the last phase of the massive Four Seasons at Great Notch senior living complex on Garret Mountain on the Clifton - Woodland Park border.)