San Diego scores a 15 on Trulia’s Rent vs. Buy Index for the latest quarter of 2011.
San Diego is cheaper to buy than rent!
The index tracks whether buying a home or renting is less expensive in America’s 50 largest U.S. cities by population.
The price-to-rent ratio for the 50 largest U.S. cities was calculated using the median list price compared with the median rent on two-bedroom apartments, condominiums and townhomes listed on Trulia.com.
The costs of homeownership used included PITI (principal and interest, taxes, insurance) plus closing costs, HOA dues and PMI (private mortgage insurance). Also included was an offset for tax advantages of homeownership, which included mortgage interest, property tax and closing cost deductions. The costs of renting include rent and renter's insurance for the comparison.
$260,000 to $350,000 was the range used for purchase, and $1350 to $1850 was the range used for rent.
The conclusion reached is that it is more affordable to buy than to rent in San Diego.
San Diego scored less affordable than Long Beach and more affordable than San Jose and Oakland. Fresno and Sacramento were the most affordable California metro areas, Los Angeles and San Francisco the least affordable.
Showing in the middle range of California properties, San Diego is cheaper to buy than rent!