Report: Cheaper to rent than buy in several areas

A study by Roofstock examined metropolitan statistical areas that have the highest rent-to-price ratios — one metric potential buyers use to assess if continuing to rent is more viable than trying purchase a home. With both real estate and rental prices rising quickly over the past two years, renters are left to try to stretch their budgets to purchase homes that rapidly increased in price, or to live with rising rents and risk home values climbing further out of reach.

In markets where the ratio of rents to the cost of home ownership are higher, purchasing is a better option, whereas those with lower rent-to-price ratios, where costs of homeownership exceeds rent, homes may be overvalued.