According to recent research it is better to rent instead of buying a home in San Diego. There were 50 cities ranked in this survey by Trulia.com.
The determining factor in whether it was better to rent or buy was derived by dividing the average home price by the average annual rent for a 2-bedroom. To be ranked as being a better place to buy the ratio needed to be 15 or less.
Rounding out the top 10 cities with high price to rent ratios are:
1. New York
2. Omaha, NE
4. Portland, OR
5. San Francisco
6. Oklahoma City
7. Kansas City, MO
8. San Diego
Pete Flint, co-founder of Trulia, pointed out that not they’re not advising not to buy in these markets but rather pointing out that it’s “signficantly more expensive than renting”. Umm, Pete, we already knew that. And this is after the housing market collapse a few years ago.
One of my worries in raising a family here is that they’d never be able to afford their own home. The recent market adjustment allayed those fears even though none of our kids took advantage. My daughter-in-law already owned her own mortgage home when they married and my younger son plans to be in the public service sector where they have home ownership programs.
Historically housing has appreciated quite nicely here and I believe it will continue to do so in the future. You will pay more when buying a property but at the end of 30 years you can sell it and get your money back and more. If you rent that money’s gone.
In that respect, buying is not a bad deal. But I’m not so certain about some of the other markets on the list. The economic prospects of Cleveland might not be the same as San Francisco or New York. Is it cheaper to rent or buy where you live?
Content © Bucksomeboomer 2009-2010. All Rights Reserved.