If the worst city to rent a home in the entire country is right in your backyard, does that mean that you should make every effort to buy instead? ...What about if the worst TWO cities in the country to rent a home are geographically connected to where you live?
When you get right down to it, the decision to rent vs. buy is a financial one, that comes with weighing in the pro's and con's of both for your own financial situation and the economy.
Just a few weeks ago, Forbes.com published an article about the best and worst cities in the country for renters. Marcus & Millichap, a real estate investment firm based in Encino, California, collaborated with Forbes on this piece, and rated the 44 biggest cities in the U.S. They based their article on four criteria: First quarter average rent, and how much it changed year-over-year; vacancy rates, (higher vacancy rates mean lower rent prices), and the cost of renting versus buying.
In short, New Haven, CT was the WORST city in the country for renters, with New York City coming in second. The fact that Fairfield County, Connecticut connects those regions should tell you something. If you look at their findings, you would probably agree that our area, although not in their survey, is limited for rental opportunities. Add the high inventory of homes for sale coupled with low interest rates, and at this point, it is very reasonable to surmise that it is cheaper to buy rather than rent in our area of Southwestern Connecticut.
That being said, general geographical statements as to the real estate market may not be true in all cases- it is going to be somewhat different for everyone based upon their particular needs. I have found an outstanding rent vs. buy calculator, courtesy of The New York Times which I would like to share with you.
Whether it's better for you to buy or rent, contact me, and I would be honored to work with you. I work with Landlords and Tenants, as well as Sellers and Buyers. You can be assured of the best representation and service- and that's my personal guarantee.