Buying a home is cheaper than renting in most U.S. cities, except New York

Buying a home is cheaper than renting one in 72 percent of the largest U.S. cities, led by Miami and Las Vegas, due to an increase in foreclosures boosting demand for apartments, according to Trulia’s latest Rent vs. Buy Index, released today. However, New York is one of four cities that Trulia tracks in which renting is less expensive than buying, Bloomberg News reported. “Many former homeowners have flooded the rental market,” said Pete Flint, Trulia’s CEO. “Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets.” Boston, Cleveland and eight other cities have relative affordability for renting, though “buying may still be a financially sound long-term decision,” Trulia said. The cities where buying is most affordable include Arlington and Phoenix, according to the index, which compares the costs of leasing and buying a two-bedroom home in the 50 biggest cities each quarter. [Bloomberg]