Trulia Reports Buying a Home in Top 100 Major Metros Is Cheaper Than Renting Despite Rising Home Prices

Don’t Have the Best Credit? Don’t Worry. Homeownership Still Beats Renting Even If You Can’t Get the Lowest Mortgage Rates

SAN FRANCISCO–(BUSINESS WIRE)– Trulia (NYS: TRLA) today released its Winter 2013 Rent vs. Buy Report, which provides the inside scoop on whether buying a home is more affordable than renting in America’s 100 largest metropolitan areas. Looking at homes for sale and for rent on Trulia between December 1, 2012, and February 28, 2013, this study compares the average cost of renting and owning for all homes on the market in a metro area, factoring in all cost components including transaction costs, taxes, and opportunity costs. For the full report and methodology, see here.

Low Mortgage Rates Keep Homeownership Affordable Nationwide

Asking home prices rose 7.0 percent year-over-year (Y-o-Y) nationally in February, outpacing rents, which rose 3.2 percent Y-o-Y, according to the Trulia Price and Rent Monitors. However, today’s low mortgage rates, at 3.5 percent at the end of February¹, have kept the cost of homeownership from rising much. In fact, buying a home is 44 percent cheaper than renting nationwide – down just slightly from 46 percent in 2012. Even in each of the 100 largest metros, buying is more affordable than renting, though how much more affordable homeownership is ranges significantly – from 70 percent cheaper to buy than rent in Detroit, to only 19 percent cheaper in San Francisco.