The Real Deal Miami

Renters may be better off than buyers in Fort Lauderdale and Miami

December 23, 2010 02:07PM

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 certain Florida cities rather than to buy one. Out of 55 metropolitan areas across the country, Fort Lauderdale had a rent ratio of 15.7, while Miami’s ratio was slightly lower, at 15.6 “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.” Manhattan had a rent ratio 26.7 and East Bay, Calif. was at the top of the list, with a ratio of 35.9. [NYT]