When it comes to housing, renting is in and owning is out.
Though mortgage rates are at record lows, a number of factors are pushing more Americans to rent: New credit rules have made it harder to qualify for loans; fewer Americans have enough money saved up to make down payments; and the volatile home market has made ownership less appealing.
As a result, rental costs across the country have surged. Rent in the borough of Manhattan hit a record high of $3,438 last month and across the country rates are up 6 percent over last year.
Forbes Magazine recently collaborated with the real estate firm Marcus & Millichap to determine the worst cities for renters. They rated the 44 largest metropolitan areas based on first quarter average rent in 2012, year-over-year change in rent, availability of space, and the price difference between monthly mortgage payments and rent.
Here are some of the worst cities to rent homes in:
Los Angeles, California
Metro Area: Los Angeles-Long Beach-Glendale, CA
Average Monthly Rent: $1,398
Mortgage Payment v. Rent Payment: $31 cheaper to rent
Washington D.C.
Metro Area: Washington-Arlington-Alexandria, DC-VA-MD-WV
Average Monthly Rent: $1,419
First Quarter Vacancy Rate: 4 percent
Mortgage Payment v. Rent Payment: $205 cheaper to rent
Minneapolis, Minnesota
Metro Area: Minneapolis-St. Paul-Bloomington, MN-WI
Average Monthly Rent: $965
Mortgage Payment v. Rent Payment: $122 cheaper to own
New York, New York
Metro Area: New York-White Plains-Wayne, NY-NJ
Average Monthly Rent: $2,902
Mortgage Payment v. Rent Payment: $217 cheaper to own
Click here for Forbes' full list of the worst cities for renters.
