We got some good economic news during the past week with announcements that July's new and existing home sales jumped significantly, beating analysts expectations. While buying a home isn't the best choice for everyone and not every American considers home ownership part of the dream, lower prices have made it an option for more people who want it.
Because the market has sunk deeply in certain areas, owning a home can cost nearly the same as renting. BusinessWeek and research firm Reis discovered that it actually costs less to own than rent in Detroit and Pittsburgh, and they found 20 other metros where renting costs almost the same as buying. It doesn't look like they took into account the added maintenance expense that comes with home ownership, so keep that in mind when perusing the results.
Rebecca
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Well, the equity you're building might off set the extra maintenence. I wonder if they factored in HOA costs, taxes, insurance, tax write offs, etc. There are so many things to factor in it seems like every rent vs. own analysis I have seen has been incomplete.
1In our city, it costs a lot less to own than to rent. You can get a halfway decent starter home for next to nothing ($60-$100K), so most people that rent here are either single people or students.
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