Between Seattle and Austin...

Recent  Data On an Old Question
Trulia just released their Winter 2012 Rent vs. Buy study looking at 100 metro areas and considering their rent vs. buy ratio.  If you aren't famliar with Trulia, their website says,

"Trulia is an all-in-one real estate site that gives you the local scoop about homes for sale, apartments for rent, neighborhood insights, and real estate markets and trends to help you figure out exactly what, where, and when to buy, sell, or rent."

Trulia, similar to Zillow, has access to a bunch or real estate data and does some pretty interesting things with that data.

In looking at renting vs. buying, they considered asking prices for both rental and for sale properties for December 1,  2011 to February 29, 2012.  It is nice to have pretty recent numbers, as often real estate statistics can lag by several months, which in a changing market, matters.  Yes, we are in a changing market.  There is an inherent assumption here, that seasonal pressures on prices, rent and purchase, are similar; an assumption with which I agree.

Trulia's interpretation of the index says anything under 15 is a market in which buying is better than renting.  From 15 to 20, the question hinges on tax deductions, local programs and incentives and other indicators.  Anything over 20 is a market in which renting is considered better than buying.

Only two major markets in the United States showed indicators above 15; San Francisco and Honolulu.  Some niche markets in New York city eke above 20, but not the city over all.

Portland, which the report calls Portland, OR WA, ranked # 82 with a factor of 11. Seattle is just above us at #81, and our somewhat sister city of Austin, TX is at #83.  It seems we are in good company.  As one might expect, Detroit, MI ranked #1 as the city where buying is a better idea than renting.  hmm.

A few other housing thoughts.
The Oregonian reported today that 30 year fixed rate loans snuck above 4%. And a reminder for buyer's using FHA insured loans, in a well advised effort to increased their reserves, the  monthly mortgage insurance premium from 1% to 1.75% for loans originated after April 1st.  Read more about that here.  This change is estimated to cost the average buyer about $5 more per month, which translates to approximately $1000 of home buying power.

Read Trulia's report here.