A report released today shows that it's better to buy than to lease in Dallas right now. This interesting chart on Trulia's second quarter 2011 Rent vs. Buy Index shows whether it is better to rent or buy in each of America's 50 largest cities. Factored in are not only the costs, but unemployment rates, foreclosure filing activities and job growth projections affect renting and buying. The size of each circle corresponds to population.
You can see from the charts that the average cost to rent a two bedroom property in Dallas is $1,000 to $1,500. The average cost to buy the same property in Dallas is $100,000 to $200,000.
The rent to buy ratio uses the median list price vs the median rent price on a two bedroom townhome, apartment or condo. Of course, in North Dallas, most properties are larger than that.
But I like that they figure in the total costs of homeownership. That includes mortgage principal, interest, property taxes, insurance, closing costs at time of purchase, and HOA dues. It also includes an offset for the tax advantages of home ownership, including property tax, mortgage interest and closing cost deductions.
The figures reflect the total costs of renting to include rent and renter's insurance. [where: 75230]