For most people, living in most locations it is still cheaper to buy a home rather than rent. No doubt that there are some interesting dynamics at play, but here are a couple of main points:
- Many former homeowners have flooded the rental market, making renting a more expensive option.
- Availability and Affordability of homes on the market
According to Trulia, in most of the 50 largest cities in the U.S., it is cheaper to buy a home rather than rent. "Since the start of the 'Great Recession,' many former homeowners have flooded the rental market. Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets," said Pete Flint, CEO and co-founder of Trulia, in a statement.
Also, stricter bank lending practices have made it more difficult for many potential homeowners to get a mortgage loan. Meanwhile, owning a home is more affordable in most cities. It's a great time for lifelong renters to become homeowners by taking advantage of the affordability and availability of homes on the market.
To see if home ownership is right for you, it is important to work with the right agent and the right mortgage company. If you are interested in buying a home in St. Charles or St. Louis County, please contact me and I'll get you moving!
Trulia's rent vs. buy index compares the median list price with the median rent on two-bedroom apartments, condominiums and townhomes listed on Trulia.com as of Jan. 10, 2011. It considers the total cost of homeownership compared to the total cost of renting.
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