The online real estate company Trulia, in its latest Rent vs. Buy Index, found that a combination of falling prices and a tight rental market has created conditions favoring buying over renting from coast to coast.
Buying is much cheaper than renting in metro areas with slower economic growth and higher vacancy rates, as well as areas with land to spare, Trulia noted on its blog.
Data is based on asking prices for rentals and houses for sale at Trulia.com. The rankings are determined by a ratio of the metro’s average for-sale price to the average rent for 12 months. Low ratios indicate areas where buying is more affordable, and high ratios are where renting is more affordable.
Here are the 10 metro areas with the highest and lowest price-to-rent ratios:
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