Buying might be less expensive than renting in many cities across USA.

Buying might be less expensive than renting in many cities across USA.

According to LoanRateUpdate.com earlier today, it is now "less expensive to buy than it is to rent in most cities". The article goes on to talk about different cities across the country where you could literally be paying less by renting your home than by purchasing it. Most of the areas where the claim is currently true have been hard hit by foreclosures, economic disaster, or both.

The information they give makes perfect sense, in areas that have a ton of houses on the market of course the housing is less expensive. What surprises me is that the rental rates are so high in these areas. I would think they would both go down together, but I guess if the market has a ton of people looking to rent (who may have recently lost their home) it all fits into place.

The story also goes on to talk about places where it is less expensive to rent than it is to buy. Among them are New York, NY, Seattle, WA, Kansas City, MO, San Francisco, CA, Memphis, TN, Los Angeles, CA, Fort Worth, TX, Oakland, CA, Portland, OR, and Albuquerque, NM - which are all areas that have not suffered the same damaging effects as other cities might have during the current economic recession. I guess those suckers (like myself) living in larger west coast cities are outta luck in the rent versus buy... for now. I hope our own regional bubble pops so I can be one of the chosen home owners, too.