Interesting article from Trulia. They basically compare the cost of owning to renting and highlight 10 cities where it makes a lot more sense to buy then rent (assuming you are staying put).

  1. Detroit, MI
  2. Gary, IN
  3. Birmingham, AL
  4. Toledo, OH
  5. Kansas City, MO-KS
  6. Cleveland, OH
  7. Dayton, OH
  8. Memphis, TN-MS-AR
  9. Grand Rapids, MI
  10. St Louis, MO-IL

According to their analysis its 66% cheaper to buy then rent in Detroit, down to 54% cheaper to buy in St Louis. You notice a trend here? These seem to be largely or maybe even entirely economically depressed areas. If I am going to buy (invest) in real estate, I would want to see some consistent job growth in the area.

So where does NYC come in? Apparently on the list of the 10 worst (they don’t call them the worst, they call them a “closer call”). NYC is 5th worst(?) at only 22% cheaper to buy than rent. So many questions one could ask about the methodology and how meaningful the overall rankings really are.

So are the 10 worst all in growth areas? Not sure but its Honolulu (5%), San Jose (9%), San Fran (13%), Orange County (21%), New York (22%), Oakland and Los Angeles both 24%, Ventura County and Albany (NY) at 27%, and Austin (30%) so definitely some growthier areas on that list.