It’s actually a little frightening to consider but rising rents and falling property values are combining the change the rent vs. buy equation for thousands of potential homeowners. In a sense, the world's turned upside down.The statistical support for this contention actually comes from nationwide numbers published by Trulia.com which indicate that rents in the third quarter were up 2.6 percent over a year ago and that occupancy rates climbed sharply, to 93.9 percent (fueled in part by those displaced by the foreclosure crisis).
At the same time the median price of an existing home has continued to drop (homes in MMR have lost over 8% of their value this year and, as bad as that may seems we actually outperformed the market) and most observers expect them to continue to fall as high levels of foreclosures flood many markets and demand slackens.
The result is that many prospective buyers in more are finding that it is actually cheaper to buy than rent. The Trulia.com web site calculated the comparative costs of owning versus renting in the nation's top 50 markets and found that in 18 of those markets it is much less expensive to buy than rent. And, both Phoenix and Mesa ranked in the top five of the markets identified.
The result is that many prospective buyers in more are finding that it is actually cheaper to buy than rent. The Trulia.com web site calculated the comparative costs of owning versus renting in the nation's top 50 markets and found that in 18 of those markets it is much less expensive to buy than rent. And, both Phoenix and Mesa ranked in the top five of the markets identified.
As disconcerting as the numbers might be, it does point out the fact that there’s opportunity out there for those with the courage and foresight to take advantage of it.
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