Miami's real estate market is near rock bottom, which means it's a good time to buy a home. In fact, according to a new analysis from real estate site Trulia.com, if you're renting, you're ripping yourself off. More than any other major city market in America right now, Miami is the best place to buy a home rather than rent.
"Miami is the most affordable of the largest 50 U.S. cities for buying a home, compared with the cost of renting, and was one of 36 of the cities where buying was cheaper, according to the real estate website Trulia.com," reports SeattlePI.com. "Trulia calculated the price-to-rent ratio using the median list price and median rent on two-bedroom apartments, condominiums and townhomes listed on its site."
Trulia found that the median monthly rent for "two-bedroom apartments, condominiums and townhomes" in Miami is between $1500 and $2000 a month.
Meanwhile, the median list price for similar properties is between $100,000 and $200,000.
The ratio between those two in Miami is the most favorable for home buyers in any big city in the country..
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The good buying market compared to the relatively bad rental market has something to do with supply and demand. After the area was hit with a barrage of foreclosures, many former homeowners turned into renters, driving average rent up, while the economic climate made it difficult for some would-be homeowners to secure mortgages. Other potential home buyers shied away due to the unstable economy.
"Lifelong renters are seizing the opportunity to become homeowners while affordability is high," says Trulia."At the same time, a growing number of long-time homeowners are finding themselves tenants -- some by choice and others by necessity."
Miami led the list, followed closely by Las Vegas. Though there are still cities, such as New York and Los Angeles, where it's still much cheaper in the long term to rent.