By Rodney Anderson
Can it really be cheaper to buy a home than to rent one?
The answer, surprising to some, is “yes’’ – and while that speaks to the financial turmoil that we are in as a nation, the upside-down nature of things does represent a way to achieve “The American Dream.’’
The Huffington Post calls this “a worrisome milestone.’’ But if in your part of the country it is now cheaper to buy than to rent – and if you qualify – this is not at all “worrisome’’ for you.
Quite the contrary.
It is now cheaper to buy a home than to rent one in 74 percent of the country’s largest 50 cities, according to the real estate site Trulia. The reason it’s a concern to some: It means depressed housing prices still exist around the country, and that’s not healthy for the country.
But …
Trulia did the research, comparing list price and rent for two-bedroom apartments, condos and townhomes. They did so while surveyed America’s 50 largest cities. And what they found is that renting is more expensive than buying in dozens of markets. That is particularly true Miami and Las Vegas, and interestingly, right here in Arlington, Texas. (In a minority of cities, including New York, Seattle, Kansas City and San Francisco, it’s still more expensive to buy than to rent.)
Again, on a macro level, this is nothing to celebrate. Low home prices are delaying an overall recovery in the US housing market. Zillow reported that average prices were down 6.2 percent from a year before … and that is a big-picture problem for the US economy, which seems to be no surer bet than those cash bingo games. It means wealth is down which means spending is down which means some people delay their purchasing of a home.
But what about small-picture? What about your picture?
If prices are down, and if it’s cheaper to own than to rent, and if interest rates are at 50-year lows…. let me tell you, DFW understands. Our offices have been terrifically busy in the last two weeks, with people just like you calling 1-800-EXPRESS to examine ways that the U.S.’s big-picture problems can be survived by you if you take care of your little-picture business. It’s the American Dream, and it comes now with an unusual advantage: It’s cheaper to buy than to rent.
