As rental rates rise across the country, a recent report found that it is currently more affordable to buy property then rent it in most metropolitan areas.
According to Trulia, it is now cheaper to buy a home in 98 of the 1000 largest cities across the nation than rent. This even includes mature marketplaces, such as New York City, Boston and Los Angeles, which have continued to outperform national real estate averages in the wake of the housing market collapse.
"As rents rise and prices stagnate, homeownership is becoming even more affordable, but rising rents create a dilemma for people who can’t afford to buy yet," said Trulia chief economist Jed Kolko. "Rising rents make it harder for people to save for a down payment, which is the biggest barrier to buying a home that aspiring homeowners face."
Factors, including home prices, mortgage rates and median household incomes, all play a major role in determining overall housing affordability. The relationship between this property data was recognized by the National Association of Realtors' Housing Affordability Index, which recently reached an all-time high level of 206.1.