Based on current market conditions, buying a home is cheaper than renting in 74 percent of major U.S. cities. Trulia’s Summer 2011 Rent vs. Buy Index compared price-to-rent ratios for the 50 largest cities using the median list price compared to the median rent as of July 1. Renting was cheaper than buying in only 12 of the 50 analyzed cities. Ken Shuman, head of communications at Trulia, said buyers should ask themselves if they plan to live in the home for at least seven years, could make monthly payments, and have enough for a down payment and six-to-eight months worth of mortgage payments. According to Schuman, the cost of buying a home definitely outweighs renting in most cities for prospective buyers that can answer yes to each of those questions. More here.
