Buying a home more affordable than renting in four out of five major cities

Dennis Norman St LouisA report released this morning by Trulia shows that when it comes to the question “should I rent or buy” the answer is to buy in 80 percent of the 50 largest U.S. cities. Trulia’s “Rent vs. Buy Index” compares the cost of buying and renting a two-bedroom apartment, condominium or townhouse and for the 2nd quarter of 2011 this index shows that buying is the way to go from an affordability standpoint for most areas….the only cities where renting was cheaper than buying were New York, Fort Worth and Kansas City.

“With home prices nearing a double dip and more foreclosures expected to flood the housing market over the next two years, the decision between renting and buying a home across most of the country has clearly moved in favor of buying,” says Ken Shuman, Head of Communications at Trulia. “As we head into the summer buying season, those looking to buy a home should be encouraged by improvements in the market and feel optimistic about their chances of finding an affordable home, much more so than in previous years.”

To see the Rent vs. Buy index for the 50 largest cities in the U.S. click here.

Trulia also has a pretty cool interactive map which allows you to see the rent vs buy data for the 50 major cities covered by their rent vs. buy index. To check it out click on the map to the right or click here.

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