For those who don’t like math but do like colored circles, here’s a graphic visualizing which cities it’s cheaper to buy in and which it’s cheaper to rent in. The redder the circler, the better it is to rent. The greener, the better it is to buy.
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: