Below is an updated list of rent ratios â?? the price of a typical home divided by the annual cost of renting that home â?? for 55 metropolitan areas across the country.
We last covered this subject about eight months ago, and youâ??ll notice that most ratios have not changed much since then. A good rule of thumb is that you should often buy when the ratio is below 15 and rent when the ratio is above 20. If itâ??s between 15 and 20, lean toward renting â?? unless you find a home you really like and expect to stay there for many years.
Metro area Ratio East Bay, Calif. 35.9 Honolulu 34.4 San Jose, Calif. 32.7 San Francisco 27.9 Seattle 27.3 Charlotte, N.C. 27 Orange County, Calif. 27 New York (Manhattan) 26.7 Raleigh, N.C. 26.2 Portland, Ore. 25.9 North â?? Central New Jersey 25.2 Nashville 24 Denver 22.6 San Diego 22.1 Long Island, N.Y. 21.4 Milwaukee 21.4 Austin, Tex. 20.5 Norfolk, Va. 19.9 Richmond 19.7 Memphis 19.3 Bridgeport, Conn. 18.5 Hartford 18.4 Boston 18.4 Washington â?? Northern Virginia â?? Maryland 18.3 Oklahoma City 18.2 Baltimore 17.6 Columbus, Ohio 17.6 Palm Beach County, Fla. 17.6 Salt Lake City 17.6 Sacramento 16.7 San Antonio 16.7 Chicago 16.6 New Orleans 16.2 Philadelphia 16.1 Houston 15.9 Fort Lauderdale, Fla. 15.7 Miami 15.6 New York 15.4 Los Angeles 15.4 Kansas City, Kan. 15.3 Inland Empire, Calif. 15.1 National average for metro areas 15.1 Indianapolis 15.1 Jacksonville, Fla. 15 Minneapolis 14.9 St. Louis 14.6 Las Vegas 14.3 Atlanta 14.3 Orlando, Fla. 14.1 Tampa, Fla. 14 Cincinnati 13.9 Dallas â?? Fort Worth 13.8 Phoenix 13.3 Detroit 12.4 Cleveland 11.7 Pittsburgh 11.4Itâ??s pretty amazing when you think about it. The country has suffered through a terrible crash in home prices, yet buying a house remains an iffy proposition in many markets.
The data comes from Mark Zandi of Moodyâ??s Analytics and covers the second quarter of this year. Home prices havenâ??t changed very much since then, so I would expect ratios in most places to be quite close to the numbers you see here.
E-mail This Print Share Close Linkedin Digg Facebook Mixx My Space new_york_times:http://economix.blogs.nytimes.com/2010/12/22/buy-vs-rent-an-update/ Permalink housing, Mark Zandi, real estate, rent ratio, rent vs. buy Related Posts From Economix Rent vs. Buy in Nine More AreasWhat About Home Prices and Incomes?But Arenâ??t Home Prices Still Falling?Is 15 a Better Rent-Ratio Cutoff?The Thoughtful Roar of the Housing Bears Previous Post The Holiday Stimulus Package NYTD.CRNR.userContent.getUserContent(25,'default'); Search This Blog Search Previous Post The Holiday Stimulus Package Follow This Blog Twitter RSSBelow is an updated list of rent ratios â?? the price of a typical home divided by the annual cost of renting that home â?? for 55 metropolitan areas across the country.
We last covered this subject about eight months ago, and youâ??ll notice that most ratios have not changed much since then. A good rule of thumb is that you should often buy when the ratio is below 15 and rent when the ratio is above 20. If itâ??s between 15 and 20, lean toward renting â?? unless you find a home you really like and expect to stay there for many years.
Itâ??s pretty amazing when you think about it. The country has suffered through a terrible crash in home prices, yet buying a house remains an iffy proposition in many markets.
The data comes from Mark Zandi of Moodyâ??s Analytics and covers the second quarter of this year. Home prices havenâ??t changed very much since then, so I would expect ratios in most places to be quite close to the numbers you see here.
Should you buy a home or rent one? An updated list of the relationship between home prices and rents in 55 metropolitan areas.
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An accounting of the governmentâ??s rescue package.
Three economists explain what worked and what didn't.
A map of unemployment rates across the United States, now through January.
Faces, numbers and stories from behind the downturn.
A series about the surge in consumer debt and the lenders who made it possible.
A series exploring the origins of the financial crisis, from Washington to Wall Street.
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