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Buy or rent? 10 major cities

Deciding whether to buy or rent? Here's how the math plays out for some of the nation's biggest cities, according to real estate site Trulia.

Seattle

seattle buy or rent cities gallery
  • Buy or rent?: Buy
  • After 3 years: Buyers save 14%

Seattle's land comes at a premium: The area's residential communities are hemmed in by the Olympic Mountains and Cascade Range, as well as the Puget Sound.

And the area's strong economy -- helped by a slew of profitable tech outfits such as Microsoft and Amazon.com -- keeps workers flocking to the area.

As a result home prices, at a median of $310,000, are more than 60% higher than the national median of $188,000, according to NAHB,

The cost of renting in the area is just slightly higher than the national average. Even so, with interest rates so low and home prices forecast to rise, buying is the better option even for those planning just a three-year stay. They should save 14% compared with renting. After five years, that saving advantage rises to 34% and to 42% after seven.

Source: Trulia
Savings are based on a comparison of total housing costs for buyers and renters and include transactional cost, such as commissions, taxes, appreciation and opportunity costs, like the potential returns of selling a home. The calculation assumes homeowners will put 20% down on a 3.5%, 30-year fixed-rate mortgage, will itemize deductions and are in the 25% tax bracket.
  @CNNMoney - Last updated March 28 2013 12:23 PM ET

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