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Friday, November 19, 2010

10 U.S. Cities Where Renting Rules

Some locales where paying a landlord rather than taking on a mortgage may surprise you

We're all aware that the housing market, well, stinks right now. With an excess of supply and lowered demand, it's a buyer's market — but is that true everywhere? Here are 10 cities where renting rules, and why you're better off writing your landlord a check than taking on a mortgage.

1. New York
Average List Price: $1,879,000
New York: if you can make it there, you can make it anywhere, right? That certainly holds true for real estate, because the average home price in the Big Apple is nearly $2 million. Rent is high too, but it still makes more sense than owning a home: According to Trulian, New York City's rent-to-buy index is 35, meaning that it would take 35 years of renting before you match homeowners' expenses. That rent check may make you cringe, but it beats paying a mortgage in New York.

Bottom line
We've all been taught that homeownership means you've arrived, but the recent downturn in the housing market has made everyone re-evaluate that rule. Many of these cities share a stronger-than-average job market, making them desirable places to live. Whether you live in one of these cities, elsewhere, or plan a move, do your homework before thinking buying a home is your next step. Sometimes, renting means you're financially savvy — something we all aspire to these days.

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