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According to a new report, it's officially now cheaper to rent a home than buy in San Francisco, reports Adam Brinklow for Curbed San Francisco.

The 2018 report from Trulia found that in both San Francisco and San Jose, home values have soared such that it’s now cheaper to rent than buy based on the median home prices and rent rates. The report estimates that the average home value is $1.39 million in San Francisco and $1.28 million in San Jose

According to Trulia economist Cheryl Young:

For as long as we have run this report, renting has never been a better deal than buying. But this summer, driven by epic home price appreciation and lifeless rents, renting tips the scales over buying in San Jose and San Francisco.

Home values in San Jose have soared 29.0 percent since last year, while, in San Francisco, home values rose 14.2 percent. Escalating prices are driving homes further out of reach, but there’s a silver lining for home seekers in these Bay Area markets: Rents were unchanged in San Jose and fell three percent in San Francisco. Young calculates that in San Francisco you save 5.8 percent in the long run by renting, and in San Jose it’s a whopping 12.2 percent.

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