After comparing the cost of renting to the price of homeownership, Trulia’s Summer 2012 Rent vs. Buy Report determined that buying a home is more affordable than renting in America’s 100 largest metropolitan areas. Closing costs, maintenance, insurance, and property taxes were among the factors included in determining the price of homeownership. The report also assumed homes would be sold after seven years. The results found buying a home is anywhere from 25 percent to 70 percent more affordable than renting in the largest cities across the country. Jed Kolko, Trulia’s chief economist, said homeownership is cheaper than renting in all of the 100 largest metros, by a wide margin. According to Kolko, rent continues to rise faster than home prices, making buying a house the more affordable choice across much of the country. More here.
