May 4th, 2011
The San Jose Mercury reported that data shows that buying condos, versus renting, makes financial sense in San Francisco, San Jose, and Oakland in this current market.
A study done by Trulia of the nation’s fifty largest cities focusing on rent-versus-buy price analysis revealed that these Bay Area cities, especially San Jose, ownership is less expensive.
They calculated a rent-to-buy ratio of cost, and any city with a rent-to-buy ratio of 15 or below means that it is less expensive to buy. San Jose’s ratio is 12-1.
Oakland and San Francisco, where renting is cheaper, can make more financial sense to buy depending on the situation. Oakland has a ratio of 16, and San Francisco 19.