Buying over renting is a no-brainer in many markets like Atlanta. In most places, home values are relatively low compared with the cost of renting.
In Trulia’s most recent Rent vs. Buy Report, it was revealed that homeownership remains cheaper than renting in 98 of the 100 largest metro areas in the United States, with a traditional 30-year fixed rate mortgage.
Trulia calculated the true cost of renting vs. buying from including all assumed renting costs, including one-time costs (like security deposits), and compares them to the monthly costs of owning a home (insurance, mortgage payments, taxes, and maintenance) including one-time costs (down payments, closing costs, sale proceeds). It was also assumed that most homeowners will stay in their home for seven years, put down a 20% down payment, and take out a 30-year fixed rate mortgage.
The extended study results are here.
Here is a map of the 100 metro cities that were studied. The darker the blue dot, the cheaper it is to buy there.