Even with rising home prices and interest rates that are following suit, it’s cheaper to buy then rent both on a national level as well as in all of the 100 largest metro areas, according to a report just released by Trulia. According to the report, nationally it is 38% cheaper to buy than rent and in St Louis, it is 54% cheaper to buy then rent putting St. Louis at the #10 spot on “Where Buying a Home is a No-Brainer” list. See below for the complete list of the top 10 no-brainer to buy cities as well as the 10 cities where buying a home would be a “risky proposition”.
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Where Buying a Home is a No-Brainer |
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| # | U.S. Metro |
Cost of Buying vs. Renting (%), Winter 2014 |
Cost of Buying vs. Renting (%), Winter 2013 |
Mortgage Rate Tipping Point When Renting Becomes Cheaper Than Buying, Winter 2014 |
| 1 | Detroit, MI |
-66% |
-70% |
33.8% |
| 2 | Gary, IN |
-61% |
-63% |
21.8% |
| 3 | Birmingham, AL |
-58% |
-59% |
18.4% |
| 4 | Toledo, OH |
-58% |
-62% |
22.6% |
| 5 | Kansas City, MO-KS |
-58% |
-60% |
20.1% |
| 6 | Cleveland, OH |
-56% |
-63% |
20.9% |
| 7 | Dayton, OH |
-56% |
-63% |
20.9% |
| 8 | Memphis, TN-MS-AR |
-56% |
-62% |
19.1% |
| 9 | Grand Rapids, MI |
-55% |
-58% |
19.3% |
| 10 | St. Louis, MO-IL |
-54% |
-58% |
17.7% |
Source: Trulia
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Where Buying a Home Could Be the Riskiest Proposition |
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| # | U.S. Metro |
Cost of Buying vs. Renting (%), Winter 2014, assuming worst home-price scenario |
Annual appreciation in worst home-price scenario |
| 1 | San Jose, CA |
79% |
-2.8% |
| 2 | Oakland, CA |
75% |
-5.8% |
| 3 | Orange County, CA |
71% |
-4.6% |
| 4 | San Francisco, CA |
71% |
-2.5% |
| 5 | Honolulu, HI |
67% |
-2.5% |
| 6 | Ventura County, CA |
67% |
-5.9% |
| 7 | Los Angeles, CA |
63% |
-4.8% |
| 8 | Sacramento, CA |
63% |
-8.2% |
| 9 | Las Vegas, NV |
53% |
-11.1% |
| 10 | San Diego, CA |
53% |
-5.3%
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Source: Trulia
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