Renting Instead of Buying? Look at Jacksonville's Buy/Rent Ratio and Re-Think It.
by Donny Mak
on Monday, January 1st, 2001 at 1:00am.
Yes, Jacksonville is at the low end with respect to best performing housing markets. Here’s the lemonade: Because Jacksonville’s rank is low, we’re ranked #8 on the top 10 list of cities in the US where it’s cheaper to buy than rent.
Trulia reports it’s cheaper to buy than rent in 74 percent of 50 major U.S. cities, including Jacksonville. Trulia’s price-to-rent ratio uses the median listing price divided by annualized median rent. Ratios 15 and under mean that it’s less expensive to buy than rent. Jacksonville’s buy/rent ratio: 8. Ratios that are 20 or higher means that renting is a bargain in that city.
Top Ten Places in the US where it’s cheaper to buy than rent, in order of low to high buy/rent ratio: Las Vegas (6) , Detroit (6); Mesa, AZ. (6); Fresno, CA (6); Arlington, TX (6); Sacramento (6); Phoenix (6); Jacksonville (6); San Antonio (6) and Tulsa(6). The number one place where it makes more sense to rent than to buy: New York City.