Buying Better Than Renting – But Everybody’s Renting
Trulia.com just released its Summer 2011 Rent vs. Buy Index. It compares the costs of buying or renting a two bedroom condominium, apartment or townhouse in America’s 50 largest cities based on population.
Based on current market conditions, buying a home is cheaper than renting in 74% of major U.S. cities. It isn’t totally a black and white decision, as many areas are on the edge, and tax bracket or other consumer situations can influence which is best.
Here are the top five cities where buying beats renting:
1. Las Vegas
2. Detroit
3. Mesa
4. Fresno
5. Arlington
Here are the top five cities where renting beats buying:
1. New York
2. Fort Worth
3. Omaha
4. Seattle
5. San Francisco
While it’s cheaper to buy than to rent over much of the country, that doesn’t mean people are chucking rent and buying houses. Rental vacancy rates are at their lowest since 2003 and still falling. While rents were predicted to increase 2-3% on average annually at the beginning of the year, it’s looking like increases will be greater with growing demand.
The latest Census Bureau report shows that vacancies for rental housing were at 9.2%, a drop of 1.4% from a year ago, and a half-percent lower than in the first quarter of this year. The median asking rent for vacant units was $684/month.
For rental property investors, the outlook is great, with few signs of any changes coming soon. However, as always recommended, be planning how you’ll be exiting an investment before you enter it. That planning in current markets could include planning for a rent-to-own sale at a top-end price to a buyer who wants to own, but can’t get a loan.
Trulia.com just released its Summer 2011 Rent vs. Buy Index. It compares the costs of buying or renting a two bedroom condominium, apartment or townhouse in America’s 50 largest cities based on population.
Based on current market conditions, buying a home is cheaper than renting in 74% of major U.S. cities. It isn’t totally a black and white decision, as many areas are on the edge, and tax bracket or other consumer situations can influence which is best.
Here are the top five cities where buying beats renting:
1. Las Vegas
2. Detroit
3. Mesa
4. Fresno
5. Arlington
Here are the top five cities where renting beats buying:
1. New York
2. Fort Worth
3. Omaha
4. Seattle
5. San Francisco
While it’s cheaper to buy than to rent over much of the country, that doesn’t mean people are chucking rent and buying houses. Rental vacancy rates are at their lowest since 2003 and still falling. While rents were predicted to increase 2-3% on average annually at the beginning of the year, it’s looking like increases will be greater with growing demand.
The latest Census Bureau report shows that vacancies for rental housing were at 9.2%, a drop of 1.4% from a year ago, and a half-percent lower than in the first quarter of this year. The median asking rent for vacant units was $684/month.
For rental property investors, the outlook is great, with few signs of any changes coming soon. However, as always recommended, be planning how you’ll be exiting an investment before you enter it. That planning in current markets could include planning for a rent-to-own sale at a top-end price to a buyer who wants to own, but can’t get a loan.