Our First Home
It’s the classic newlywed image: the happy groom carrying his beautiful bride through the doorway of their new house.
Emphasis on house.
Following the mortgage meltdown, tighter lending standards and higher down-payment requirements have made it more difficult to secure financing for a new house. But for couples looking to make their first home sweet home, it’s worth noting that buying a home is cheaper than renting in 74 percent of major U.S. cities according to real estate website Trulia.com’s Summer 2011 Rent vs. Buy Index. The listings are based on a price-to-rent ratio of the median listing price divided by the annualized media rent. Ratios 15 and lower indicate buying is less expensive than renting, while rations 20 or higher indicate renting is less expensive than buying.
The index compares the cost of buying and renting a two-bedroom apartment, condominium or townhouse in America’s 50 largest cities, based on population.
The Top Five cities where buying a home beats renting, with the price:rent ration in italics:
1. Las Vegas (6)
2. Detroit (7)
3. Mesa, Ariz. (7)
4. Fresno, Calif. (7)
5. Arlington, Texas (8)
The Top Five cities where renting is cheaper than buying
1. New York (36)
2. Fort Worth, Texas (32)
3. Omaha, Neb. (27)
4. Seattle (24)
5. San Francisco (24)
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