Source: "10 Best Cities for Home Buyers," CNNMoney.com (March 28, 2011)
Cities that had been hard-hit by the housing market crash now offer some of the best buys in real estate and where it makes much more sense to buy than rent, according to a new report from Deutsche Bank. The bank's study measures affordability by the share of income that Americans are paying to own a home as well as the cost of owning vs. renting.
Here are six of the cities that topped Deutsche Bank's list.
1. Atlanta
Rent as % of after tax mortgage payment: 151.2%
Median home price change, 2006-2010: -33.2%
In Atlanta, the average monthly rent is about 50 percent more than the average after-tax mortgage payment. Plus, home prices in Atlanta have dropped nearly 14 percent year-over-year in February, creating a great opportunity for buyers to cash in.
2. Orlando
Rent as % of after tax mortgage payment: 137.2%
Median home price change, 2006-2010: -51.3%
Orlando saw a larger drop in home prices during the past year than any of Florida's other metro areas, according to a Florida REALTORS® report cited by the Orlando Sentinel.
3. Rochester, N.Y.
Rent as % of after tax mortgage payment: 136%
Median home price change, 2006-2010: 3.6%
While housing prices in Rochester-the second-largest economy in the state-inched up slightly between 2006 and 2010, the city still favors home ownership over renting.
4. Cleveland
Rent as % of after tax mortgage payment: 132.6%
Median home price change, 2006-2010: -14.8%
It costs about 24 percent less to buy a home in Cleveland than it does to rent.
5. Tampa-St. Petersburg
Rent as % of after tax mortgage payment: 131.6%
Median home price change, 2006-2010: -41.4%
Tampa-St. Petersburg was one of the most overbuilt states during the housing boom and it ranks ninth in the country for foreclosures. But it's still an attractive spot for retirees, and with dropping home prices it's now more affordable to own than rent here.
6. Las Vegas
Rent as % of after tax mortgage payment: 125.1%
Median home price change, 2006-2010: -56.5%
Empty homes and condos blanket Las Vegas, but a comeback is in sight. More than half of sales in Las Vegas are from cash buyers, signaling investors have re-emerged. A strong rental market also means renting out properties still offer a good return.
Source: "10 Best Cities for Home Buyers," CNNMoney.com (March 28, 2011)
Pool & rec building for Gateway Condo, MLS #7484736, photo by Annalisa Weller
5552 10th St S, MLS #7448953, St Petersburg, FL, photo Annalisa Weller
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