A recent study from real estate resource Trulia found that renting is more expensive than purchasing a home in nearly three quarters of major metropolitan areas.
However, it is still smarter to rent in cities such as New York City, Fort Worth, Texas, Omaha, Nebraska, Seattle, Washington, Kansas City, Missouri, and San Francisco, the report shows. In other cities, such as Oakland, Los Angeles and San Jose, California; Memphis; Portland, Oregon, and Boston, homebuying is more affordable.
"While recent stock market volatility on top of the slow economic recovery makes homebuyers nervous, it has not destroyed the American dream of homeownership," said Ken Shuman, head of Communications at Trulia. "However, prospective homebuyers, who are ready and qualified to buy, face an uphill battle despite falling home prices and record-low mortgage rates."
Residential homebuying in areas that have been riddled with foreclosures could be a better option for many than renting at the moment, but that may not be the case for long. Home values continue to drop in major metros nationwide.