Better to rent than buy in Manhattan

According to a recently released list of rent ratios from Moody’s — the price of a typical home divided by the annual cost of renting that home — it may be better to rent a home in Manhattan rather than buy one. Out of 55 metropolitan areas across the country, Manhattan ranked eighth on the list with a rent ratio of 26.7. “A good rule of thumb is that you should often buy when the ratio is below 15 and rent when the ratio is above 20,” according to the New York Times. “If it’s between 15 and 20, lean toward renting — unless you find a home you really like and expect to stay there for many years.” Central New Jersey had a rent ratio of 25.2, while Long Island’s ratio was lower, at 21.4. East Bay, Calif. was at the top of the list, with a rent ratio of 35.9. [NYT]

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