With property values down and mortgage interest rates low, it is now more affordable to buy a home than rent in 74 percent of the biggest housing markets in the United States, according to a recent report from real estate company Trulia.
Las Vegas topped the Trulia list of markets where buying is more cost-effective than renting. The average monthly mortgage payment for a median-priced Las Vegas condo bought with a 30-year fixed loan is $256. Rent for a comparable condo would run more than $800 a month, Trulia reports.
Sin City moving companies can expect to stay busy, as Las Vegas homes have been selling at record levels this summer, according to the Greater Las Vegas Association of Realtors.
Like Las Vegas, other top cities where buying beats renting are places where a high volume of foreclosure properties has brought down real estate prices, such as Detroit, Phoenix and Fresno, California.
Though low home prices played into Kiplinger's decision to name Omaha, Nebraska, the best value city in America, it's still 27 times more expensive to buy than rent in that market, according to Trulia. Seattle and San Francisco are other markets where renting remains more affordable than buying. New York City topped that list, as the cost of buying a 2-bedroom Manhattan apartment is 36 times greater than the price to rent.