According to new data, buying a home is cheaper than renting in 72 percent of big U.S. cities. This information comes from real estate data provider Trulia Inc.’s Rent vs. Buy Index, which revealed on Monday that the demand for apartments has made renting a little more expensive.
Demand for Apartments on the Rise
The foreclosure rate has skyrocketed in the past few years thanks to the housing market crash. As a result, foreclosures hit record numbers in 2010.
Many homeowners strapped with underwater mortgages, as well as those who lost their jobs and couldn’t keep up their payments, have been walking away from their mortgages or having them taken in droves. This has increased the demand for apartments, driving up the cost to rent.
At the same time, the demand for the mortgage loan has dropped considerably due to the increased number of empty, bank-owned properties found throughout neighborhoods nationwide. This has driven home prices down, making it much cheaper to purchase a home.
Homes Cheapest in Miami and Las Vegas
Among the 72 percent of big cities with two-bedroom houses that have cheaper costs than apartments, the data from Trulia showed that Miami and Las Vegas lead the way because they have had some of the highest foreclosure rates in the country.
Some other cities that Trulia found to be cheaper for purchasing than renting include Arlington, Texas, and Mesa and Phoenix, Arizona.
The only major cities that Trulia found were cheaper for renting were New York, Seattle, San Francisco and Kansas City, Mo. Boston, Cleveland and eight other cities were said to have affordable renting as well as good buying options.
Overall, the report found that the top 10 cheapest cities to purchase are all in Florida, Nevada, Texas, Arizona and California. So if you’re looking to buy, these might be the states you consider during your property searches.
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