Monday, January 31, 2011
At the beginning of the the material on Landlord-Tenant, I do a song and dance about how this country has fetishized homeownership in very strange and unproductive ways. I also try to convince the class that (in financial terms) renting is often the better long-term option. Quite frankly, I find this exercise to be one of the most difficult teaching moments of the year, as many students have completely internalized the maxim that renting amounts to "flushing money down the toilet every month."
A report from Trulia (a real-estate search engine) might force me to reassess my opinion. Trulia claims that the foreclosure crises has made it more practical to buy rather than rent a two-bedroom home in 72% of America's 50 largest cities. Pete Flint, CEO of Trulia, notes, "Since the start of the ‘Great Recession,’ many former homeowners have flooded the rental market. Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets. Though necessary for achieving true economic recovery, stricter bank lending practices have also further aggravated the struggling housing market in the short term."
Top Cities to Rent v. Buy Top Cities to Buy v. Rent
1. New York 1. Miami
2. Seattle 2. Las Vegas
3. Kansas City 3. Arlington, TX
4. San Francisco 4. Mesa, AZ
5. Memphis 5. Phoenix
6. Los Angeles 6. Jacksonville
7. Forth Worth 7. Sacramento
8. Oakland 8. San Antonio
9. Portland 9. Fresno
10. Albuquerque 10. El Paso
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