Despite the downtrodden housing market and struggling economy, it makes more financial sense to buy a home than to rent. That is according to a new survey by real estate listing website Zillow. You could break even on a purchased home in less than two years in places like Miami, Florida.
This is Zillow's first buy-versus-rent analysis. It incorporates all homeownership costs, including down payments, closing costs and mortgage payments, compared to rental costs. Other factors observed were home price appreciation, rent increases, tax deductions and inflation.
However, Zillow says buying isn't the best option everywhere. It found renters still have the upper hand in big cities, including Honolulu and San Francisco.