Deutsche Bank released a very interesting study this week showing that renting a home costs US households more than paying a mortgage for the first time in at least two decades. The rent-buy ratio, or rent as a percentage of after-tax mortgage payments, is based on figures that Deutsche Bank compiled from NAR and the REIS information service. Rent amounted to 100.2% of home-loan costs in last year’s fourth quarter, the highest level since calculations began in 1991.
So dissecting this: renting is now more costly than buying, rates have come back down this week ….it is a great day to buy OR SELL a house!
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Kfoley Homes by Kristen Foley, REALTOR® 
where can I see details of this report – which cities were best for buying, etc?
I have yet to find the full details of the report; however it has gotten a ton of press so I know it is out there somewhere. Metro area cities tend to be the better areas to purchase…especially those in which you can still purchase homes coming out of the decline (from the bubble burst) (i.e. Atlanta, Tampa, Las Vegas and other cities where rentals are in high demand because (in addition to other reasons), frankly everyone’s credit is ruined and they can’t buy). The DC are is not in that particular case in terms of homes being worth very little and are not dirt cheap to buy, but it is a high demand rental market here and rental rates are on the rise. Home purchase prices are rising as well, but not as quickly and with the interest rates as low as they are, it will cost you much less on a monthly basis in many cases. Additionally, with this area have a 4-5 year average turnover, it will always be a hot market to sell in making it a better long term investment because it will be easier to sell in the future than in very depressed market areas such as the ones mentioned above.
Let me know if there is any way I can help you!
Warmest, Kristen
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