Is it better to rent or buy? It's always been better to buy from the aspect of taxes and building equity. However, the housing crash put the question of buying into perspective. Some recently have purported that home prices have risen too high, thus making it better for some tenants to keep renting.
The problem here is that rents have also risen, and when combined with student debt, are squeezing people's abilities to save for the down payment for a home. That doesn't mean buying a home isn't better. In a new report, Trulia looked at the financial means of buying versus renting in each of the 100 largest metros.
On a bang-for-your-buck basis, it’s better to buy in all of them.
Some markets are more advantageous than others. In Miami, it's 53 percent cheaper to buy than to rent a home of similar size, the biggest discount among the metropolitan areas included in the report. In Honolulu, it's 17 percent cheaper to buy, the smallest discount.
In 58 of 100 metros, including such diverse cities as Chicago, Houston, Long Island (N.Y.), and Nashville, mortgage rates would have to top 10 percent—a level they haven’t reached since 1990—before renting became a better deal. In 26 of 100 metros, including Detroit and Dallas, home prices would have to double to make renting look like a good financial move.