It really wasn’t surprising to find that in 98 out of 100 U.S. cities buying a home was the better decision between the two. Low home prices and mortgage rates are the largest contributing factor to this on-going trend, but the simultaneous rise in rent prices in many cities pushed the rent over buy index to new lows.
East coast and west coast giants California and New York had some of the highest priced-to-rent ratios in the country, with lower ratios were to be found in the Midwest. Northwest mecca Seattle came in at #81 with a somewhat higher than average ratio, but still within the bounds of a city where it is better to buy.
This could be a very nice turn for the real estate market as the economy struggles to rebound; doubtlessly this sort of news will spur home prices to begin to rise. NOW may be the best time to buy a home!