Rent or Buy Table
The price-rent ratioÑa cityÕs median home price divided by median annual rentÑis one sign of how stable home prices are likely to be.
Bubble ZoneMarkets at a Bottom, and those that may fall moreThe price-rent ratioÑa cityÕs median home price divided by median annual rentÑis one sign of how stable home prices are likely to be. We have also included the average monthly mortgage payment (based on a 10% down payment and 5.3% interest rate for a 30-year, fixed-rate mortgage) and median apartment rent.Most StableMetro area Price-rent ratio Monthly mortgage payment Apartment rentCleveland, Ohio 12 $788 $696 Detroit, Mich. 13 762 757Tampa, Fla. 14 909 776Indianapolis, Ind. 14 828 628Atlanta, Ga. 14 823 756Inland Empire, Cal.* 15 1,057 996Las Vegas, Nev. 15 916 795St. Louis, Mo. 15 891 682Cincinnati, Ohio 15 892 667Jacksonville, Fla. 15 1,028 758Least StableMetro area Price-rent ratio Monthly mortgage payment Apartment rentOakland, Cal. 34 $2,934 $1,233San Jose, Cal. 34 3,428 1,449San Francisco, Cal. 30 3,736 1,732Orange County, Cal. 30 3,128 1,444Seattle, Wash. 29 2,147 926Salt Lake City, Utah 27 1,296 694New York, N.Y. 27 7,083 3,327Portland, Ore. 26 1,627 762San Diego, Cal. 26 2,263 1,278Tucson, Ariz. 25 1,122 604Based on third quarter 2009 data. *Includes RiversideÐSan Bernardino, Cal. Sources: Marcus & Millichap Research Services, Federal Housing Finance Board, National Association of Realtors, Reis Inc.
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