COLORADO SPRINGS, COLO. -- It is less expensive to buy a home than rent one in Colorado Springs, according to data released this week by Trulia.com.
Trulia, a website for home buyers and renters, released first quarter 2011 data for America's 50 largest cities by population. It is cheaper to buy homes in 72 percent of major U.S. cities despite a growing consumer preference to rent.
The data shows Colorado Springs ranks 31 on the list of 50 with a 15 Price:Rent ratio. Any city with a ranking of 15 or lower is a place in which buying is cheaper than renting.
The ratio is determined by taking the average price of a home and dividing by the yearly cost of renting one. The lower the number, the more affordable purchasing a home is compared with renting one.
Trulia looks at two-bedroom homes as a base for its results. When calculating the rent ratios, they look at two bedroom apartments, condominiums and townhomes.
Officials with Trulia said more people are choosing to rent because of financial difficulties, including those who may have been homeowners in the past.
“Although owning a home is relatively more affordable in most cities, market conditions have caused an interesting demographic swap between traditional renters and buyers,” Tara-Nicholle Nelson, Consumer Educator for Trulia, said in a statement. “For example, lifelong renters are seizing the opportunity to become homeowners while affordability is high. At the same time, a growing number of long-time homeowners are finding themselves tenants - some by choice and others by necessity.”
Miami is ranked at the top of the list for buying a home. New York has the highest ratio, meaning of the 50 largest U.S. cities, it is most beneficial to rent instead of buy in the Big Apple.
Denver ranks 22 on the list with a ratio of 13.
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