Buy vs. rent: What you'll pay in the 10 biggest cities

Despite rising home prices and climbing mortgage rates, it's still cheaper to buy a home than rent one in these 10 major cities, according to Trulia. Here's how much you'll save.

New York

rent buy new york
  • % saved buying: 22%
  • Median home price : $520,000
  • Median rent: $2,850

While Manhattan's multimillion-dollar penthouses and expensive suburbs may make all the headlines, many single-family homes in the area command much more reasonable prices, said Jonathan Miller, of the New York appraisal firm Miller Samuel.

Rents have been stable over the past year but are much higher than the national median rent of $1,580. For people willing to stay in their homes for seven years or more, that makes buying a more favorable proposition, especially given recent mortgage rates.

Related: Home prices: Your local forecast -- 384 markets tracked

"Even in these metros buying remains cheaper, thanks to mortgage rates that are still very low by historical standards," said Jed Kolko, Trulia's chief economist.

Source: Trulia
In order to get a more accurate comparison, Trulia estimated sale prices and rents for similar homes in similar neighborhoods, instead of using the average sale price or rental rate. It further calculated the initial total monthly costs of owning and renting, including maintenance, insurance and taxes, as well as future costs of owning and renting, such as price and rent appreciation and inflation. Trulia also included one-time transactional costs, including down payments, sales proceeds and security deposits. It assumes that buyers get a 30-year fixed mortgage with a 4.5% rate and put 20% down and that residents stay in their home for at least seven years.
- Last updated March 03 2014 12:09 PM ET
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