Oh you guys are gonna love this one:
Rent vs. own ratio to flip in 2011?
Cnnmoney.com/Fortune
Posted by Nin-Hai Tseng, writer-reporter
“By mid 2011 and certainly by end of 2011, buying will be superior to renting in most parts of the country,” (Mark) Zandi says
, the comparative costs between renting and buying will largely depend on individual market conditions. For instance, cities in Florida and Arizona, which continue to experience high foreclosure rates, falling home prices and widespread unemployment, will be areas where homeownership will likely be more affordable than renting, says Daisy Kong at Trulia, a San Francisco-based real estate data provider. Meanwhile, renting will probably continue to make more financial sense in national and regional job centers such as New York, Omaha and Seattle, she says.
And while it could become more attractive to buy than rent this year, it’s anyone’s guess how long it could take before a flurry of home sales transpires. Household finances have improved only modestly and are still quite a mess. Also, lending standards for new mortgages have tightened considerably and many economists have said a housing rebound will likely fall mercy to the unemployment rate, which is expected to improve some but still hover over 9%.
Will the American Dream return to your town?
Location Price-Rent Ratio
Atlanta, GA 12.82
Austin, TX 21.08
Boston, MA 17.71
Baltimore, MD 17.42
Charlotte, NC 25.98
Chicago, IL 15.09
Cincinatti, OH 13.74
Cleveland, OH 11.43
Columbus, OH 15.61
Dallas - Fort Worth, TX 16.98
Denver, CO 22.08
Detroit, MI 12.32
East Bay, CA 35.06
Fort Lauderdale, FL 15.19
Hartford, CT 18.52
Honolulu, HI 34.72
Houston, TX 16.01
Indianapolis, IN 14.68
Inland Empire, CA 14.75
Jacksonville, CA 15.12
Kansas City, KS 14.4
Las Vegas, NV 13.89
Long Island, NY 21.09
Los Angeles, CA 14.99
Memphis, TN 17.92
Miami, FL 14.57
Milwaukee, WI 22.36
Minneapolis, MN 14.04
Nashville, TN 23.88
New Orleans, LA 15.66
New York, NY 15.43
Norfolk, VA 19.88
North - Central New Jersey 24.69
Oklahoma City, OK 16.11
Orange County, CA 27.14
Orlando, FL 13.1
Palm Beach County, FL 16.64
Philadelphia, PA 15.94
Phoenix, AZ 12.35
Pittsburg, PA 11.71
Portland, OR 25.74
Raleigh, NC 24.39
Richmond, VA 22.18
Sacramento, CA 15.85
Salt Lake City, UT 18.05
San Antonio, TX 17.77
San Diego, CA 21.75
San Francisco, CA 27.17
San Jose, CA 32.27
Seattle, CA 26.96
Bridgeport, CT 18.49
St. Louis, MO 14.04
Tampa, FL 13.08
Washington - Northern Virginia - Maryland 18.48
Manhattan, NY 28.34
Metropolitan Area Average 14.85
U.S. 10.42
Source: Moody’s Analytics, price-rent ratio for third quarter of 2010. As a general rule of thumb, you should often buy when the ratio is below 15 and rent when it’s above 20. If it’s between 15 and 20, lean toward renting.
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