A new report from Trulia says that, nationwide, buying a home is 26.3% cheaper than renting. Of course this all depends on the particular area, however their study also shows that for the first time in five years renting has come out best in two West Coast metros: San Jose and San Francisco, CA. Both of these locales have soaring home values and flattened rents. They also point out that in a few other areas (like Honolulu and Seattle) the savings from buying a home has dissipated, leaving home buying with a slight advantage.
“To be sure, in most places, buying is still a significantly better financial proposition. But, looking nationwide, the steady upward march of home prices has shrunk the savings from buying in every one of the country’s 100 largest markets.”