Experts say the bargains can't get much better for would-be homebuyers this spring. Buying is now more affordable than renting in nearly four out of five cities, according to the quarterly Rent vs. Buy Index released by online real-estate resource Trulia. Mix in attractive mortgage rates luring house hunters, and experts expect to see some life restored to the flat-lining housing market this spring. On the following pages, here's a look at 10 major cities where it might be smarter to buy than rent.
Las Vegas
Projected home price growth over the next five years: 42%
Foreclosure rate: 0.84%
Projected job growth: 2.9%
Unemployment rate: 13.7%
One of the hardest-hit markets in the housing bust, Las Vegas is now one of the best cities to snag a bargain. Experts say a true recovery in this desert city's housing market is years away, but for now, the climate is good for bargain shoppers.
Miami
Projected home price growth over the next five years: 7.5%
Foreclosure rate: 0.22%
Projected job growth: 2.6%
Unemployment rate: 10.9%
House hunters have plenty of stock to choose from in this Sunshine State city. Along with existing homes for sale, Miami has a plentiful supply of new developments sitting empty, as well as distressed properties, according to Jonathan Miller, the president of Miller Samuel Real Estate Appraisers in New York City.
Sacramento, Calif.
Projected home price growth over the next five years: 31%
Foreclosure rate: 0.49%
Projected job growth: 1.5%
Unemployment rate: 12.6%
California's capital city wasn't spared the fallout from the Golden State's sputtering real-estate market. But for opportunistic buyers willing to wait out Sacramento's prolonged economic recovery, the investment could pay off.
Detroit
Projected home price growth over the next five years: 34%
Foreclosure rate: 0.39%
Projected job growth: 2%
Unemployment rate: 11.8%
The Motor City's decline has been well documented, but thanks to slightly improving auto sales and better balance sheets from the Big Three, the outlook for Detroit may be improving. With the drop in population in the area, homes are plentiful, but prices are expected to rise over the next five years.
Omaha, Neb.
Projected home price growth over the next five years: 23%
Foreclosure rate: 0.06%
Projected job growth: 2.3%
Unemployment rate: 5.4%
Omaha had one of the largest quarter-over-quarter jumps in favor of homebuying.
San Antonio
Projected home price growth over the next five years: 8.7%
Foreclosure rate: 0.15%
Projected job growth: 3.5%
Unemployment rate: 7.5%
Homebuying in the big cities of Texas is getting more affordable. Tied with Dallas, El Paso and Houston, San Antonio had one of the most affordable buy-to-rent ratios in the Lone Star State.
Atlanta
Projected home price growth over the next five years: 25.1%
Foreclosure rate: 0.25%
Projected job growth: 1.2%
Unemployment rate: 10.2%
Home prices in Georgia's capital city have continued to drop, reaching a new low from their 2006-07 peak, according to the most recent S&P/Case-Shiller home price indexes. However, with favorable home prices for buyers and low interest rates on mortgages, experts hope to see an uptick in buyer interest.
Chicago
Projected home price growth over the next five years: 30.3%
Foreclosure rate: 0.19%
Projected job growth: 2.3%
Unemployment rate: 9.2%
Chicago sits in the middle ground between renting and buying, and experts say that in these kinds of markets, the determining factor is more likely to be personal finances than home prices.
Washington, D.C.
Projected home price growth over the next five years: 6.5%
Foreclosure rate: 0.01%
Projected job growth: 2.4%
Unemployment rate: 5.9%
Although Washington is the only market to post a year-over-year gain in home prices on the S&P/Case-Shiller indexes, it's still less expensive overall to buy in D.C.'s ultracompetitive real-estate market than it is to rent.
Cleveland
Projected home price growth over the next five years: 22.2%
Foreclosure rate: 0.14%
Projected job growth: 1%
Unemployment rate: 9.1%
Nearing the fringe of the metropolitan areas where it's more affordable to buy, Cleveland still had one of the largest quarter-over-quarter shifts in favor of homeownership.
msn