Houston ranks 14th with 7.3 on Buying vs Renting ratio – A Strong Buy…

Trulia releases price-to-rent analysis report with a ratio every quarter to gauge how varies metros are doing on the Buying Vs Renting to guide the home buyers. I have posted a blog talking about similar report last year in May. This recent release is for the period, Winter 2012. The price-to-rent ratio of 15 or below indicates it is less expensive to buy than to rent in an area; a ratio of 20 or higher indicates renting is less expensive than buying; and a ratio between 15 and 20 indicates buying could be cheaper than renting depending on individual circumstances, including tax considerations.

Out of 100 metros, 98 beats Buying instead Renting. Of the 10 metros with the lowest price-to-rent ratios, eight were in the Midwest, including six that were in either Michigan or Ohio.

Rank—–U.S. Metro——–Price:Rent Ratio
1 Detroit 3.7
2 Oklahoma City 4.3
3 Dayton, Ohio 4.8
4 Warren-Troy-Farmington Hills, Mich. 5.4
5 Toledo, Ohio 6
6 Grand Rapids, Mich. 6.1
7 Cleveland 6.2
8 Atlanta 6.5
9 Gary, Ind. 6.7
10 Memphis, Tenn.-Miss.-Ark. 6.8

As you can see, Houston ranks number 14 with 7.3 ratio which is just above 7 indicating strongly, buying is more affordable than renting. This should answer many perspective home buyers who is still hesitating to buy and sitting on the sidelines. You can check out the detail report at Trulia.com and also multimedia graphics to see the numbers for other metros.

About Vijaianand Thirnageswaram

I am a Proud Realtor of Texas, trying to guide and help clients to find their dream home and educate them to buy them for right price. I am also a Candidate for CFP who has more financial knowledge which allows me share and educate clients in any financial decision making process.

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