Tuesday, April 20, 2010

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The cost difference between buying and renting is as narrow as it has been
since 1993, according to a study on homeownership by Marcus & Millichap Real
Estate Investment Services for the Associated Press.

The study examined rent and home prices in 45 metropolitan areas and
concluded that gap between a payment on a median-priced home and median rent
on a similar property is on average only $256.

Marcus & Millichap calculated the number using median home prices for the
last three months of 2009, assuming a 10 percent down payment on a 30-year
fixed-rate loan at 5.07 percent. It factored in mortgage insurance, but
didn't include either repair costs or tax benefits.

The difference is narrowest in such hard-hit markets as Detroit, Las Vegas,
Atlanta, Cleveland, Indianapolis, and Orlando.

Renting remains significantly cheaper in New York, Los Angeles, Seattle, San
Diego, San Francisco, and San Jose, Calif.

Source: Associated Press (04/19/2010)

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