10/3/2012 - Can't decide whether to buy or rent? The numbers say purchasing is the way to go
Throughout much of the United States, it's considerably cheaper to buy a home than it is to rent one, a new report indicates.
According to real estate information website Trulia, the average cost of owning a residence is more affordable than renting out an apartment in all of the major metropolitan markets polled. This included Detroit at 70% cheaper, San Francisco at 28%, Honolulu at 24% and New York at 31%.
Jed Kolko, Trulia's chief economist, indicated that virtually all of the market indicators point toward buying a home as being the best option from a financial standpoint.
"Homeownership is cheaper than renting in all of the 100 largest metros, by a wide margin," said Kolko. "Despite the recent price rebound, rents continue to rise faster than prices, and mortgage rates are near record lows."
Some of the measurements used to determine the price of homeownership included property taxes, maintenance and closing costs. Security deposits, rental rates and renters insurance
were considered to gauge the cost of renting, Trulia noted.