Housing prices are dirt cheap in Kansas City, low enough to make even the most modest earners feel the pull of the American Dream.
But feel no regret, KC apartment-dwellers: According to a new study by a real estate website, this town is one of the few where renting is truly cheaper than own a home.
Trulia.com ranked America's 50 biggest cities based on their "Rent vs. Buy Index," which compares over time the cost of renting against the cost of home ownership, including taxes, upkeep, and hiring a PI to spy on your shady neighbors.
In most cities, the index is lower than 21. That means owning costs less over the long haul. But in seven cities -- including New York, San Francisco, Portland and Kansas City -- renting is the way to go. From the KC Business Journal:
To
create the list, Trulia analyzed the largest 50 U.S. cities by
population, then calculated a price-to-rent ratio using the average list
price compared with the average rent of two-bedroom apartments, condos
and townhomes listed on Trulia.com. Cities ranking high on the
price-to-rent ratio tend to reflect healthier local economies, Nelson
said.
According to Trulia, a price-to-rent ratio of 21 or higher indicates
that the total cost of owning a home in a given city is much greater
than the cost of renting. Kansas City's score is 23. New York topped the
list at 35; Arlington, Texas, had the lowest score -- 7.
So, in short, just because you can buy that Fairway charmer for the price of a studio in San Francisco doesn't mean you should. And just because you're living the dream in you $900/month three-bedroom apartment doesn't mean your dream is any less American than your home-owning friends'.
