>Whether ‘tis nobler in the mind or not, it’s reportedly 26% cheaper to buy a home in New York City than to rent one. That’s been true for the past year, according to data compiled by Trulia.
In other locations throughout the US, the gap is even greater. On Long Island, it’s now 36% cheaper to buy than to rent. In Detroit, it’s a staggering 70% less expensive.
Of course, purchasing a home is not for everyone. The buyer’s circumstances determine whether or not it’s worth it. Buying a home is more expensive if the owner lives at home for three years without itemizing tax deductions such as mortgage loan interest and property tax payments.
By living in one place for a longer period of time, the expenses of buying and selling can be amortized, or spread out, over a greater number of years.
Trulia predicts that home prices and mortgage rates will rise over the next year, thereby raising the cost of purchasing and making it less affordable than renting nationwide.
Renting or owning? This above all: to thine own self be true.