This Number Tells You Whether You Should Buy Or Rent Your Home

Should you buy your home or rent it? The Economix blog says one good way to figure that out is to look at your area’s “rent ratio.” That’s the cost of a typical home vs renting it. A general rule is that if that number is less than 15, you should buy. If it’s over 20, you should rent. Here’s a look at the rent ratios for some top metro areas:

Austin, TX. 20.5
Chicago 16.6
Denver 22.6
Detroit 12.4
Los Angeles 15.4
Manhattan 26.7
Miami 15.6

What’s your area’s rent ratio? Does knowing it change your plans to rent or buy?

Buy vs. Rent: An Update [economix.blogs.nytimes]