Based on home prices from last month, it's about 23 percent cheaper to buy a home than rent one in America's 100 major real estate markets, if you're a "young buyer" looking for your first place.
A new report from real estate group Trulia analyzed the cost difference between buying a home and renting one, with a special focus on buyers ages 25-34. Trulia examined current housing prices under the assumption that "young buyers" will move every five years and can only afford a downpayment of up to 10 percent. The "Rent vs. Buy" report also assumed a 3.85 percent mortgage rate on a 30-year fixed-rate loan, itemized federal tax deductions and a 25 percent tax bracket. Even so, the conclusions are hugely encouraging: Out of America's 100 biggest housing markets, only two -- Honolulu and Silicon Valley -- showed a higher price for buying a home vs. renting one. Everywhere else, the costs tipped in favor of buying a home.
Researchers credit a changing economy for the good news: Interest rates are nearing record lows, and the housing market continues to rebound from financial letdown. Trulia estimates that this is the best time to buy a house since 2012, since the gap between the cost of renting and the cost of buying is huge in many metros, especially in Southern and Midwestern markets. How huge? Check out Trulia's 10 markets where buying is much better than renting (assuming buyers are staying for five years and putting down less than 10 percent):
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