Why Renting is for Chumps

WHY RENTING IS FOR CHUMPS SAD FACE GIGANTIC MONEY INDUCED GRIN STUFFED PIGGY BANK HAND FULL OF BENJAMINS BURNING PILE OF MONEY EMPTY POCKETS CHUMP VS CHAMP (BUYER) (RENTER) THE MATH IT'S CHEAPER TO BUY THAN RENT IN AVERAGE COST OF HOME IN U.S. E$271,600 74% AVERAGE MORTGAGE: AVERAGE COST OF RENT: (FOR SINGLE FAMILY HOME) $1,055 $1,104-$1,535 OF 50 MAJOR US CITIES 2010 VACANCY RATES 12 10 8 2 IST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER RENTAL VACANCY RATE HOMEOWNER VACANCY RATE BUYING IS BETTER THAN RENTING AFTER 5 YEARS RENTING IS BETTER $20K BUYING IS BETTER $15K AVERAGE LENGTH OF HOME $1OK OWNERSHIP IN AMERICA: $5K 5 YEARS MINIMUM $0 -$5K -$1OK -$ISK 1 3 5 7 9 11 13 15 17 19 -$20K 29 21 23 25 27 YEARS OWNING A HOME TOP 5 PLACES WHERE IT IS CHEAPER TO BUY THAN RENT PRICE TO RENT RATIO= MEDIAN LISTING PRICE DIVIDED BY MEDIAN ANNUAL RENT) (RATIOS 15 AND UNDER=CHEAPER TO BUY THAN TO RENT; RATIOS 20 OR HIGHER=CHEAPER TO RENT THAN TO BUY 2. DETROIT, MI Price to rent ratio: 7 1. LAS VEGAS, N Rent: $800-$1000 Buy: $50-$150K Mortgage: $312.44 to $934.64 Price to rent ratio: 6 Rent: $700-$900 Buy: $50-$15OK Mortgage: $312.44 to $934.64 5. ARLINGTON, TX 4. FRESNO, CA Price to rent ratio: 8 Price to rent ratio: 7 Rent: $700-$900 Buy: $50-$150K Mortgage: $312.44 to $934.64 Rent: $700-$900 Buy: $50-$150K Mortgage: $312.44 to $934.64 3. MESA, AZ Price to rent ratio: 7 Rent: $600-$800 Buy: $50-$15OK Mortgage: $312.44 to $934.64 TOP 10 PLACES FOR BUYERS: 1. UTICA, NY 2. OKLAHOMA CITY, OK 3. ROCHESTER, NY 4. PITTSBURGH, PA 5. TULSA, OK Average Price: $104,00 Foreclosure Rate: 0.078% Price Appreciation Q-o-Q: 3.9% Average Price: $117,800 Foreclosure Rate: 0.246% Price Appreciation Q-o-Q: -1.2% Price Appreciation Y-o-Y: 2.6% Population: 50OK Unemployment Rate: 5.7% Median Income: 60.6K Average Price: $121,400 Foreclosure Rate: 0.307% Price Appreciation Q-0-Q: -.8% Price Appreciation Y-o-Y: -1.2% Population: 220K Unemployment Rate: 7.5% Median Income: 67.8K Average Price: $110,300 Foreclosure Rate: 0.471% Price Appreciation Q-0-Q: 1.1% Price Appreciation Y-o-Y: 1.2% Population: 335K Unemployment Rate: 7.4% Average Price: $ 114,000 Foreclosure Rate: 0.312% Price Appreciation Q-0-Q: -2.9% Price Appreciation Y-o-Y: -3.6% Population: 390K Unemployment Rate: 6.6% Price Appreciation Y-o-Y: 5.2% Population: 60k Unemployment Rate: 7.7% Median Income: 58K Median Income: 64K Median Income: 59.6K 8. 10. 5. 6. ALBANY, NY 7. LANCASTER, PA 8. MADISON, Wn 9. GREEN BAY, WI 8. LINCOLN, NE Average Price: 193,100 Average Price: $179,300 Foreclosure Rate: 0.438% Price Appreciation Q-o-Q: -4% Price Appreciation Y-o-Y: -2.6% Population: 56K Unemployment Rate: 6.9% Average Price: $206,700 Foreclosure Rate: 0.313% Price Appreciation Q-o-Q: .9% Price Appreciation Y-o-Y: -2.6% Population: 220K Unemployment Rate: 7.5% Median Income: 67.8K Foreclosure Rate: 0.281% Average Price: $143,100 Price Appreciation Q-o-Q: -.2% Price Appreciation Y-o-Y: -.3% Population: 96K Average Price: $134,600 Foreclosure Rate: 0.798% Foreclosure Rate: 0.302% Price Appreciation Q-o-Q: -1.8% Price Appreciation Y-o-Y: -3.5% Population: 102K Unemployment Rate: 7.9% Median Income: 67.6K Price Appreciation Q-o-Q: -2.3% Price Appreciation Y-o-Y: -3.1% Population: 225K Unemployment Rate: 7.2% Median Income: 77K Median Income: 81.8K Unemployment Rate: 4.1% Median Income: 69.5K -3% .8% 2010 2011 2010 2011 MAY 2011 ANNUAL PRICE CHANGE JUNE 2011 ANNUAL PRICE CHANGE SPREAD OF EXISTING HOME PRICE CHANGES THE PRICE OF HOMES CHANGES SEASONALLY, SO DEPENDING ON THE TIME OF YEAR THE HOME IS PURCHASED, SAVINGS ON BUYING OVER RENTING CAN BE MUCH MORE SIGNIFICANT. THE FOLLOWING SHOWS YEAR-OVER-YEAR DATA FOR HOME PRICE CHANGES DURING THE LAST FOUR YEARS. 10 5 -5 -10 -15 -20 -25 MAY 07 JUL 07 SEPT 10 NOV 10 NOV 07 MAR 08 NOV 08 MAY 09 MAY 10 MAR II SOURCES: http://www.realtor.org/research/research/home_price_monitor_0711 https://www.efanniemae.com/sf/refmaterials/hudmedinc/ http://www.zillow.com/blog/2011-01-26/best-places-to-buy-in-2011/ http://www.nytimes.com/interactive/business/buy-rent-calculator.html?ref=economy http://www.census.gov/hhes/www/housing/hvs/qtr211/q211ind.html http://surveysez.com/joomla/index.php/lifestyle/115-cost-of-house.html http://insiderealestatenews.com/2011/05/rental-housing-at-record-low/ http://www.bizjournals.com/sacramento/news/2011/08/16/slideshow-cities-cheaper-buy-sacramento.html http://www.nytimes.com/2011/05/11/business/economy/11leonhardt.html VACANCY RATES SEPT 07 JAN 08 MAY 08 JUL 08 SEPT 08 JAN 09 MAR 09 JUL 09 SEPT 09 NOV 09 JAN 10 MAR 10 JUL 10 JAN II MAY II WHY RENTING IS FOR CHUMPS SAD FACE GIGANTIC MONEY INDUCED GRIN STUFFED PIGGY BANK HAND FULL OF BENJAMINS BURNING PILE OF MONEY EMPTY POCKETS CHUMP VS CHAMP (BUYER) (RENTER) THE MATH IT'S CHEAPER TO BUY THAN RENT IN AVERAGE COST OF HOME IN U.S. E$271,600 74% AVERAGE MORTGAGE: AVERAGE COST OF RENT: (FOR SINGLE FAMILY HOME) $1,055 $1,104-$1,535 OF 50 MAJOR US CITIES 2010 VACANCY RATES 12 10 8 2 IST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER RENTAL VACANCY RATE HOMEOWNER VACANCY RATE BUYING IS BETTER THAN RENTING AFTER 5 YEARS RENTING IS BETTER $20K BUYING IS BETTER $15K AVERAGE LENGTH OF HOME $1OK OWNERSHIP IN AMERICA: $5K 5 YEARS MINIMUM $0 -$5K -$1OK -$ISK 1 3 5 7 9 11 13 15 17 19 -$20K 29 21 23 25 27 YEARS OWNING A HOME TOP 5 PLACES WHERE IT IS CHEAPER TO BUY THAN RENT PRICE TO RENT RATIO= MEDIAN LISTING PRICE DIVIDED BY MEDIAN ANNUAL RENT) (RATIOS 15 AND UNDER=CHEAPER TO BUY THAN TO RENT; RATIOS 20 OR HIGHER=CHEAPER TO RENT THAN TO BUY 2. DETROIT, MI Price to rent ratio: 7 1. LAS VEGAS, N Rent: $800-$1000 Buy: $50-$150K Mortgage: $312.44 to $934.64 Price to rent ratio: 6 Rent: $700-$900 Buy: $50-$15OK Mortgage: $312.44 to $934.64 5. ARLINGTON, TX 4. FRESNO, CA Price to rent ratio: 8 Price to rent ratio: 7 Rent: $700-$900 Buy: $50-$150K Mortgage: $312.44 to $934.64 Rent: $700-$900 Buy: $50-$150K Mortgage: $312.44 to $934.64 3. MESA, AZ Price to rent ratio: 7 Rent: $600-$800 Buy: $50-$15OK Mortgage: $312.44 to $934.64 TOP 10 PLACES FOR BUYERS: 1. UTICA, NY 2. OKLAHOMA CITY, OK 3. ROCHESTER, NY 4. PITTSBURGH, PA 5. TULSA, OK Average Price: $104,00 Foreclosure Rate: 0.078% Price Appreciation Q-o-Q: 3.9% Average Price: $117,800 Foreclosure Rate: 0.246% Price Appreciation Q-o-Q: -1.2% Price Appreciation Y-o-Y: 2.6% Population: 50OK Unemployment Rate: 5.7% Median Income: 60.6K Average Price: $121,400 Foreclosure Rate: 0.307% Price Appreciation Q-0-Q: -.8% Price Appreciation Y-o-Y: -1.2% Population: 220K Unemployment Rate: 7.5% Median Income: 67.8K Average Price: $110,300 Foreclosure Rate: 0.471% Price Appreciation Q-0-Q: 1.1% Price Appreciation Y-o-Y: 1.2% Population: 335K Unemployment Rate: 7.4% Average Price: $ 114,000 Foreclosure Rate: 0.312% Price Appreciation Q-0-Q: -2.9% Price Appreciation Y-o-Y: -3.6% Population: 390K Unemployment Rate: 6.6% Price Appreciation Y-o-Y: 5.2% Population: 60k Unemployment Rate: 7.7% Median Income: 58K Median Income: 64K Median Income: 59.6K 8. 10. 5. 6. ALBANY, NY 7. LANCASTER, PA 8. MADISON, Wn 9. GREEN BAY, WI 8. LINCOLN, NE Average Price: 193,100 Average Price: $179,300 Foreclosure Rate: 0.438% Price Appreciation Q-o-Q: -4% Price Appreciation Y-o-Y: -2.6% Population: 56K Unemployment Rate: 6.9% Average Price: $206,700 Foreclosure Rate: 0.313% Price Appreciation Q-o-Q: .9% Price Appreciation Y-o-Y: -2.6% Population: 220K Unemployment Rate: 7.5% Median Income: 67.8K Foreclosure Rate: 0.281% Average Price: $143,100 Price Appreciation Q-o-Q: -.2% Price Appreciation Y-o-Y: -.3% Population: 96K Average Price: $134,600 Foreclosure Rate: 0.798% Foreclosure Rate: 0.302% Price Appreciation Q-o-Q: -1.8% Price Appreciation Y-o-Y: -3.5% Population: 102K Unemployment Rate: 7.9% Median Income: 67.6K Price Appreciation Q-o-Q: -2.3% Price Appreciation Y-o-Y: -3.1% Population: 225K Unemployment Rate: 7.2% Median Income: 77K Median Income: 81.8K Unemployment Rate: 4.1% Median Income: 69.5K -3% .8% 2010 2011 2010 2011 MAY 2011 ANNUAL PRICE CHANGE JUNE 2011 ANNUAL PRICE CHANGE SPREAD OF EXISTING HOME PRICE CHANGES THE PRICE OF HOMES CHANGES SEASONALLY, SO DEPENDING ON THE TIME OF YEAR THE HOME IS PURCHASED, SAVINGS ON BUYING OVER RENTING CAN BE MUCH MORE SIGNIFICANT. THE FOLLOWING SHOWS YEAR-OVER-YEAR DATA FOR HOME PRICE CHANGES DURING THE LAST FOUR YEARS. 10 5 -5 -10 -15 -20 -25 MAY 07 JUL 07 SEPT 10 NOV 10 NOV 07 MAR 08 NOV 08 MAY 09 MAY 10 MAR II SOURCES: http://www.realtor.org/research/research/home_price_monitor_0711 https://www.efanniemae.com/sf/refmaterials/hudmedinc/ http://www.zillow.com/blog/2011-01-26/best-places-to-buy-in-2011/ http://www.nytimes.com/interactive/business/buy-rent-calculator.html?ref=economy http://www.census.gov/hhes/www/housing/hvs/qtr211/q211ind.html http://surveysez.com/joomla/index.php/lifestyle/115-cost-of-house.html http://insiderealestatenews.com/2011/05/rental-housing-at-record-low/ http://www.bizjournals.com/sacramento/news/2011/08/16/slideshow-cities-cheaper-buy-sacramento.html http://www.nytimes.com/2011/05/11/business/economy/11leonhardt.html VACANCY RATES SEPT 07 JAN 08 MAY 08 JUL 08 SEPT 08 JAN 09 MAR 09 JUL 09 SEPT 09 NOV 09 JAN 10 MAR 10 JUL 10 JAN II MAY II WHY RENTING IS FOR CHUMPS SAD FACE GIGANTIC MONEY INDUCED GRIN STUFFED PIGGY BANK HAND FULL OF BENJAMINS BURNING PILE OF MONEY EMPTY POCKETS CHUMP VS CHAMP (BUYER) (RENTER) THE MATH IT'S CHEAPER TO BUY THAN RENT IN AVERAGE COST OF HOME IN U.S. E$271,600 74% AVERAGE MORTGAGE: AVERAGE COST OF RENT: (FOR SINGLE FAMILY HOME) $1,055 $1,104-$1,535 OF 50 MAJOR US CITIES 2010 VACANCY RATES 12 10 8 2 IST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER RENTAL VACANCY RATE HOMEOWNER VACANCY RATE BUYING IS BETTER THAN RENTING AFTER 5 YEARS RENTING IS BETTER $20K BUYING IS BETTER $15K AVERAGE LENGTH OF HOME $1OK OWNERSHIP IN AMERICA: $5K 5 YEARS MINIMUM $0 -$5K -$1OK -$ISK 1 3 5 7 9 11 13 15 17 19 -$20K 29 21 23 25 27 YEARS OWNING A HOME TOP 5 PLACES WHERE IT IS CHEAPER TO BUY THAN RENT PRICE TO RENT RATIO= MEDIAN LISTING PRICE DIVIDED BY MEDIAN ANNUAL RENT) (RATIOS 15 AND UNDER=CHEAPER TO BUY THAN TO RENT; RATIOS 20 OR HIGHER=CHEAPER TO RENT THAN TO BUY 2. DETROIT, MI Price to rent ratio: 7 1. LAS VEGAS, N Rent: $800-$1000 Buy: $50-$150K Mortgage: $312.44 to $934.64 Price to rent ratio: 6 Rent: $700-$900 Buy: $50-$15OK Mortgage: $312.44 to $934.64 5. ARLINGTON, TX 4. FRESNO, CA Price to rent ratio: 8 Price to rent ratio: 7 Rent: $700-$900 Buy: $50-$150K Mortgage: $312.44 to $934.64 Rent: $700-$900 Buy: $50-$150K Mortgage: $312.44 to $934.64 3. MESA, AZ Price to rent ratio: 7 Rent: $600-$800 Buy: $50-$15OK Mortgage: $312.44 to $934.64 TOP 10 PLACES FOR BUYERS: 1. UTICA, NY 2. OKLAHOMA CITY, OK 3. ROCHESTER, NY 4. PITTSBURGH, PA 5. TULSA, OK Average Price: $104,00 Foreclosure Rate: 0.078% Price Appreciation Q-o-Q: 3.9% Average Price: $117,800 Foreclosure Rate: 0.246% Price Appreciation Q-o-Q: -1.2% Price Appreciation Y-o-Y: 2.6% Population: 50OK Unemployment Rate: 5.7% Median Income: 60.6K Average Price: $121,400 Foreclosure Rate: 0.307% Price Appreciation Q-0-Q: -.8% Price Appreciation Y-o-Y: -1.2% Population: 220K Unemployment Rate: 7.5% Median Income: 67.8K Average Price: $110,300 Foreclosure Rate: 0.471% Price Appreciation Q-0-Q: 1.1% Price Appreciation Y-o-Y: 1.2% Population: 335K Unemployment Rate: 7.4% Average Price: $ 114,000 Foreclosure Rate: 0.312% Price Appreciation Q-0-Q: -2.9% Price Appreciation Y-o-Y: -3.6% Population: 390K Unemployment Rate: 6.6% Price Appreciation Y-o-Y: 5.2% Population: 60k Unemployment Rate: 7.7% Median Income: 58K Median Income: 64K Median Income: 59.6K 8. 10. 5. 6. ALBANY, NY 7. LANCASTER, PA 8. MADISON, Wn 9. GREEN BAY, WI 8. LINCOLN, NE Average Price: 193,100 Average Price: $179,300 Foreclosure Rate: 0.438% Price Appreciation Q-o-Q: -4% Price Appreciation Y-o-Y: -2.6% Population: 56K Unemployment Rate: 6.9% Average Price: $206,700 Foreclosure Rate: 0.313% Price Appreciation Q-o-Q: .9% Price Appreciation Y-o-Y: -2.6% Population: 220K Unemployment Rate: 7.5% Median Income: 67.8K Foreclosure Rate: 0.281% Average Price: $143,100 Price Appreciation Q-o-Q: -.2% Price Appreciation Y-o-Y: -.3% Population: 96K Average Price: $134,600 Foreclosure Rate: 0.798% Foreclosure Rate: 0.302% Price Appreciation Q-o-Q: -1.8% Price Appreciation Y-o-Y: -3.5% Population: 102K Unemployment Rate: 7.9% Median Income: 67.6K Price Appreciation Q-o-Q: -2.3% Price Appreciation Y-o-Y: -3.1% Population: 225K Unemployment Rate: 7.2% Median Income: 77K Median Income: 81.8K Unemployment Rate: 4.1% Median Income: 69.5K -3% .8% 2010 2011 2010 2011 MAY 2011 ANNUAL PRICE CHANGE JUNE 2011 ANNUAL PRICE CHANGE SPREAD OF EXISTING HOME PRICE CHANGES THE PRICE OF HOMES CHANGES SEASONALLY, SO DEPENDING ON THE TIME OF YEAR THE HOME IS PURCHASED, SAVINGS ON BUYING OVER RENTING CAN BE MUCH MORE SIGNIFICANT. THE FOLLOWING SHOWS YEAR-OVER-YEAR DATA FOR HOME PRICE CHANGES DURING THE LAST FOUR YEARS. 10 5 -5 -10 -15 -20 -25 MAY 07 JUL 07 SEPT 10 NOV 10 NOV 07 MAR 08 NOV 08 MAY 09 MAY 10 MAR II SOURCES: http://www.realtor.org/research/research/home_price_monitor_0711 https://www.efanniemae.com/sf/refmaterials/hudmedinc/ http://www.zillow.com/blog/2011-01-26/best-places-to-buy-in-2011/ http://www.nytimes.com/interactive/business/buy-rent-calculator.html?ref=economy http://www.census.gov/hhes/www/housing/hvs/qtr211/q211ind.html http://surveysez.com/joomla/index.php/lifestyle/115-cost-of-house.html http://insiderealestatenews.com/2011/05/rental-housing-at-record-low/ http://www.bizjournals.com/sacramento/news/2011/08/16/slideshow-cities-cheaper-buy-sacramento.html http://www.nytimes.com/2011/05/11/business/economy/11leonhardt.html VACANCY RATES SEPT 07 JAN 08 MAY 08 JUL 08 SEPT 08 JAN 09 MAR 09 JUL 09 SEPT 09 NOV 09 JAN 10 MAR 10 JUL 10 JAN II MAY II WHY RENTING IS FOR CHUMPS SAD FACE GIGANTIC MONEY INDUCED GRIN STUFFED PIGGY BANK HAND FULL OF BENJAMINS BURNING PILE OF MONEY EMPTY POCKETS CHUMP VS CHAMP (BUYER) (RENTER) THE MATH IT'S CHEAPER TO BUY THAN RENT IN AVERAGE COST OF HOME IN U.S. E$271,600 74% AVERAGE MORTGAGE: AVERAGE COST OF RENT: (FOR SINGLE FAMILY HOME) $1,055 $1,104-$1,535 OF 50 MAJOR US CITIES 2010 VACANCY RATES 12 10 8 2 IST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER RENTAL VACANCY RATE HOMEOWNER VACANCY RATE BUYING IS BETTER THAN RENTING AFTER 5 YEARS RENTING IS BETTER $20K BUYING IS BETTER $15K AVERAGE LENGTH OF HOME $1OK OWNERSHIP IN AMERICA: $5K 5 YEARS MINIMUM $0 -$5K -$1OK -$ISK 1 3 5 7 9 11 13 15 17 19 -$20K 29 21 23 25 27 YEARS OWNING A HOME TOP 5 PLACES WHERE IT IS CHEAPER TO BUY THAN RENT PRICE TO RENT RATIO= MEDIAN LISTING PRICE DIVIDED BY MEDIAN ANNUAL RENT) (RATIOS 15 AND UNDER=CHEAPER TO BUY THAN TO RENT; RATIOS 20 OR HIGHER=CHEAPER TO RENT THAN TO BUY 2. DETROIT, MI Price to rent ratio: 7 1. LAS VEGAS, N Rent: $800-$1000 Buy: $50-$150K Mortgage: $312.44 to $934.64 Price to rent ratio: 6 Rent: $700-$900 Buy: $50-$15OK Mortgage: $312.44 to $934.64 5. ARLINGTON, TX 4. FRESNO, CA Price to rent ratio: 8 Price to rent ratio: 7 Rent: $700-$900 Buy: $50-$150K Mortgage: $312.44 to $934.64 Rent: $700-$900 Buy: $50-$150K Mortgage: $312.44 to $934.64 3. MESA, AZ Price to rent ratio: 7 Rent: $600-$800 Buy: $50-$15OK Mortgage: $312.44 to $934.64 TOP 10 PLACES FOR BUYERS: 1. UTICA, NY 2. OKLAHOMA CITY, OK 3. ROCHESTER, NY 4. PITTSBURGH, PA 5. TULSA, OK Average Price: $104,00 Foreclosure Rate: 0.078% Price Appreciation Q-o-Q: 3.9% Average Price: $117,800 Foreclosure Rate: 0.246% Price Appreciation Q-o-Q: -1.2% Price Appreciation Y-o-Y: 2.6% Population: 50OK Unemployment Rate: 5.7% Median Income: 60.6K Average Price: $121,400 Foreclosure Rate: 0.307% Price Appreciation Q-0-Q: -.8% Price Appreciation Y-o-Y: -1.2% Population: 220K Unemployment Rate: 7.5% Median Income: 67.8K Average Price: $110,300 Foreclosure Rate: 0.471% Price Appreciation Q-0-Q: 1.1% Price Appreciation Y-o-Y: 1.2% Population: 335K Unemployment Rate: 7.4% Average Price: $ 114,000 Foreclosure Rate: 0.312% Price Appreciation Q-0-Q: -2.9% Price Appreciation Y-o-Y: -3.6% Population: 390K Unemployment Rate: 6.6% Price Appreciation Y-o-Y: 5.2% Population: 60k Unemployment Rate: 7.7% Median Income: 58K Median Income: 64K Median Income: 59.6K 8. 10. 5. 6. ALBANY, NY 7. LANCASTER, PA 8. MADISON, Wn 9. GREEN BAY, WI 8. LINCOLN, NE Average Price: 193,100 Average Price: $179,300 Foreclosure Rate: 0.438% Price Appreciation Q-o-Q: -4% Price Appreciation Y-o-Y: -2.6% Population: 56K Unemployment Rate: 6.9% Average Price: $206,700 Foreclosure Rate: 0.313% Price Appreciation Q-o-Q: .9% Price Appreciation Y-o-Y: -2.6% Population: 220K Unemployment Rate: 7.5% Median Income: 67.8K Foreclosure Rate: 0.281% Average Price: $143,100 Price Appreciation Q-o-Q: -.2% Price Appreciation Y-o-Y: -.3% Population: 96K Average Price: $134,600 Foreclosure Rate: 0.798% Foreclosure Rate: 0.302% Price Appreciation Q-o-Q: -1.8% Price Appreciation Y-o-Y: -3.5% Population: 102K Unemployment Rate: 7.9% Median Income: 67.6K Price Appreciation Q-o-Q: -2.3% Price Appreciation Y-o-Y: -3.1% Population: 225K Unemployment Rate: 7.2% Median Income: 77K Median Income: 81.8K Unemployment Rate: 4.1% Median Income: 69.5K -3% .8% 2010 2011 2010 2011 MAY 2011 ANNUAL PRICE CHANGE JUNE 2011 ANNUAL PRICE CHANGE SPREAD OF EXISTING HOME PRICE CHANGES THE PRICE OF HOMES CHANGES SEASONALLY, SO DEPENDING ON THE TIME OF YEAR THE HOME IS PURCHASED, SAVINGS ON BUYING OVER RENTING CAN BE MUCH MORE SIGNIFICANT. THE FOLLOWING SHOWS YEAR-OVER-YEAR DATA FOR HOME PRICE CHANGES DURING THE LAST FOUR YEARS. 10 5 -5 -10 -15 -20 -25 MAY 07 JUL 07 SEPT 10 NOV 10 NOV 07 MAR 08 NOV 08 MAY 09 MAY 10 MAR II SOURCES: http://www.realtor.org/research/research/home_price_monitor_0711 https://www.efanniemae.com/sf/refmaterials/hudmedinc/ http://www.zillow.com/blog/2011-01-26/best-places-to-buy-in-2011/ http://www.nytimes.com/interactive/business/buy-rent-calculator.html?ref=economy http://www.census.gov/hhes/www/housing/hvs/qtr211/q211ind.html http://surveysez.com/joomla/index.php/lifestyle/115-cost-of-house.html http://insiderealestatenews.com/2011/05/rental-housing-at-record-low/ http://www.bizjournals.com/sacramento/news/2011/08/16/slideshow-cities-cheaper-buy-sacramento.html http://www.nytimes.com/2011/05/11/business/economy/11leonhardt.html VACANCY RATES SEPT 07 JAN 08 MAY 08 JUL 08 SEPT 08 JAN 09 MAR 09 JUL 09 SEPT 09 NOV 09 JAN 10 MAR 10 JUL 10 JAN II MAY II WHY RENTING IS FOR CHUMPS SAD FACE GIGANTIC MONEY INDUCED GRIN STUFFED PIGGY BANK HAND FULL OF BENJAMINS BURNING PILE OF MONEY EMPTY POCKETS CHUMP VS CHAMP (BUYER) (RENTER) THE MATH IT'S CHEAPER TO BUY THAN RENT IN AVERAGE COST OF HOME IN U.S. E$271,600 74% AVERAGE MORTGAGE: AVERAGE COST OF RENT: (FOR SINGLE FAMILY HOME) $1,055 $1,104-$1,535 OF 50 MAJOR US CITIES 2010 VACANCY RATES 12 10 8 2 IST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER RENTAL VACANCY RATE HOMEOWNER VACANCY RATE BUYING IS BETTER THAN RENTING AFTER 5 YEARS RENTING IS BETTER $20K BUYING IS BETTER $15K AVERAGE LENGTH OF HOME $1OK OWNERSHIP IN AMERICA: $5K 5 YEARS MINIMUM $0 -$5K -$1OK -$ISK 1 3 5 7 9 11 13 15 17 19 -$20K 29 21 23 25 27 YEARS OWNING A HOME TOP 5 PLACES WHERE IT IS CHEAPER TO BUY THAN RENT PRICE TO RENT RATIO= MEDIAN LISTING PRICE DIVIDED BY MEDIAN ANNUAL RENT) (RATIOS 15 AND UNDER=CHEAPER TO BUY THAN TO RENT; RATIOS 20 OR HIGHER=CHEAPER TO RENT THAN TO BUY 2. DETROIT, MI Price to rent ratio: 7 1. LAS VEGAS, N Rent: $800-$1000 Buy: $50-$150K Mortgage: $312.44 to $934.64 Price to rent ratio: 6 Rent: $700-$900 Buy: $50-$15OK Mortgage: $312.44 to $934.64 5. ARLINGTON, TX 4. FRESNO, CA Price to rent ratio: 8 Price to rent ratio: 7 Rent: $700-$900 Buy: $50-$150K Mortgage: $312.44 to $934.64 Rent: $700-$900 Buy: $50-$150K Mortgage: $312.44 to $934.64 3. MESA, AZ Price to rent ratio: 7 Rent: $600-$800 Buy: $50-$15OK Mortgage: $312.44 to $934.64 TOP 10 PLACES FOR BUYERS: 1. UTICA, NY 2. OKLAHOMA CITY, OK 3. ROCHESTER, NY 4. PITTSBURGH, PA 5. TULSA, OK Average Price: $104,00 Foreclosure Rate: 0.078% Price Appreciation Q-o-Q: 3.9% Average Price: $117,800 Foreclosure Rate: 0.246% Price Appreciation Q-o-Q: -1.2% Price Appreciation Y-o-Y: 2.6% Population: 50OK Unemployment Rate: 5.7% Median Income: 60.6K Average Price: $121,400 Foreclosure Rate: 0.307% Price Appreciation Q-0-Q: -.8% Price Appreciation Y-o-Y: -1.2% Population: 220K Unemployment Rate: 7.5% Median Income: 67.8K Average Price: $110,300 Foreclosure Rate: 0.471% Price Appreciation Q-0-Q: 1.1% Price Appreciation Y-o-Y: 1.2% Population: 335K Unemployment Rate: 7.4% Average Price: $ 114,000 Foreclosure Rate: 0.312% Price Appreciation Q-0-Q: -2.9% Price Appreciation Y-o-Y: -3.6% Population: 390K Unemployment Rate: 6.6% Price Appreciation Y-o-Y: 5.2% Population: 60k Unemployment Rate: 7.7% Median Income: 58K Median Income: 64K Median Income: 59.6K 8. 10. 5. 6. ALBANY, NY 7. LANCASTER, PA 8. MADISON, Wn 9. GREEN BAY, WI 8. LINCOLN, NE Average Price: 193,100 Average Price: $179,300 Foreclosure Rate: 0.438% Price Appreciation Q-o-Q: -4% Price Appreciation Y-o-Y: -2.6% Population: 56K Unemployment Rate: 6.9% Average Price: $206,700 Foreclosure Rate: 0.313% Price Appreciation Q-o-Q: .9% Price Appreciation Y-o-Y: -2.6% Population: 220K Unemployment Rate: 7.5% Median Income: 67.8K Foreclosure Rate: 0.281% Average Price: $143,100 Price Appreciation Q-o-Q: -.2% Price Appreciation Y-o-Y: -.3% Population: 96K Average Price: $134,600 Foreclosure Rate: 0.798% Foreclosure Rate: 0.302% Price Appreciation Q-o-Q: -1.8% Price Appreciation Y-o-Y: -3.5% Population: 102K Unemployment Rate: 7.9% Median Income: 67.6K Price Appreciation Q-o-Q: -2.3% Price Appreciation Y-o-Y: -3.1% Population: 225K Unemployment Rate: 7.2% Median Income: 77K Median Income: 81.8K Unemployment Rate: 4.1% Median Income: 69.5K -3% .8% 2010 2011 2010 2011 MAY 2011 ANNUAL PRICE CHANGE JUNE 2011 ANNUAL PRICE CHANGE SPREAD OF EXISTING HOME PRICE CHANGES THE PRICE OF HOMES CHANGES SEASONALLY, SO DEPENDING ON THE TIME OF YEAR THE HOME IS PURCHASED, SAVINGS ON BUYING OVER RENTING CAN BE MUCH MORE SIGNIFICANT. THE FOLLOWING SHOWS YEAR-OVER-YEAR DATA FOR HOME PRICE CHANGES DURING THE LAST FOUR YEARS. 10 5 -5 -10 -15 -20 -25 MAY 07 JUL 07 SEPT 10 NOV 10 NOV 07 MAR 08 NOV 08 MAY 09 MAY 10 MAR II SOURCES: http://www.realtor.org/research/research/home_price_monitor_0711 https://www.efanniemae.com/sf/refmaterials/hudmedinc/ http://www.zillow.com/blog/2011-01-26/best-places-to-buy-in-2011/ http://www.nytimes.com/interactive/business/buy-rent-calculator.html?ref=economy http://www.census.gov/hhes/www/housing/hvs/qtr211/q211ind.html http://surveysez.com/joomla/index.php/lifestyle/115-cost-of-house.html http://insiderealestatenews.com/2011/05/rental-housing-at-record-low/ http://www.bizjournals.com/sacramento/news/2011/08/16/slideshow-cities-cheaper-buy-sacramento.html http://www.nytimes.com/2011/05/11/business/economy/11leonhardt.html VACANCY RATES SEPT 07 JAN 08 MAY 08 JUL 08 SEPT 08 JAN 09 MAR 09 JUL 09 SEPT 09 NOV 09 JAN 10 MAR 10 JUL 10 JAN II MAY II WHY RENTING IS FOR CHUMPS SAD FACE GIGANTIC MONEY INDUCED GRIN STUFFED PIGGY BANK HAND FULL OF BENJAMINS BURNING PILE OF MONEY EMPTY POCKETS CHUMP VS CHAMP (BUYER) (RENTER) THE MATH IT'S CHEAPER TO BUY THAN RENT IN AVERAGE COST OF HOME IN U.S. E$271,600 74% AVERAGE MORTGAGE: AVERAGE COST OF RENT: (FOR SINGLE FAMILY HOME) $1,055 $1,104-$1,535 OF 50 MAJOR US CITIES 2010 VACANCY RATES 12 10 8 2 IST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER RENTAL VACANCY RATE HOMEOWNER VACANCY RATE BUYING IS BETTER THAN RENTING AFTER 5 YEARS RENTING IS BETTER $20K BUYING IS BETTER $15K AVERAGE LENGTH OF HOME $1OK OWNERSHIP IN AMERICA: $5K 5 YEARS MINIMUM $0 -$5K -$1OK -$ISK 1 3 5 7 9 11 13 15 17 19 -$20K 29 21 23 25 27 YEARS OWNING A HOME TOP 5 PLACES WHERE IT IS CHEAPER TO BUY THAN RENT PRICE TO RENT RATIO= MEDIAN LISTING PRICE DIVIDED BY MEDIAN ANNUAL RENT) (RATIOS 15 AND UNDER=CHEAPER TO BUY THAN TO RENT; RATIOS 20 OR HIGHER=CHEAPER TO RENT THAN TO BUY 2. DETROIT, MI Price to rent ratio: 7 1. LAS VEGAS, N Rent: $800-$1000 Buy: $50-$150K Mortgage: $312.44 to $934.64 Price to rent ratio: 6 Rent: $700-$900 Buy: $50-$15OK Mortgage: $312.44 to $934.64 5. ARLINGTON, TX 4. FRESNO, CA Price to rent ratio: 8 Price to rent ratio: 7 Rent: $700-$900 Buy: $50-$150K Mortgage: $312.44 to $934.64 Rent: $700-$900 Buy: $50-$150K Mortgage: $312.44 to $934.64 3. MESA, AZ Price to rent ratio: 7 Rent: $600-$800 Buy: $50-$15OK Mortgage: $312.44 to $934.64 TOP 10 PLACES FOR BUYERS: 1. UTICA, NY 2. OKLAHOMA CITY, OK 3. ROCHESTER, NY 4. PITTSBURGH, PA 5. TULSA, OK Average Price: $104,00 Foreclosure Rate: 0.078% Price Appreciation Q-o-Q: 3.9% Average Price: $117,800 Foreclosure Rate: 0.246% Price Appreciation Q-o-Q: -1.2% Price Appreciation Y-o-Y: 2.6% Population: 50OK Unemployment Rate: 5.7% Median Income: 60.6K Average Price: $121,400 Foreclosure Rate: 0.307% Price Appreciation Q-0-Q: -.8% Price Appreciation Y-o-Y: -1.2% Population: 220K Unemployment Rate: 7.5% Median Income: 67.8K Average Price: $110,300 Foreclosure Rate: 0.471% Price Appreciation Q-0-Q: 1.1% Price Appreciation Y-o-Y: 1.2% Population: 335K Unemployment Rate: 7.4% Average Price: $ 114,000 Foreclosure Rate: 0.312% Price Appreciation Q-0-Q: -2.9% Price Appreciation Y-o-Y: -3.6% Population: 390K Unemployment Rate: 6.6% Price Appreciation Y-o-Y: 5.2% Population: 60k Unemployment Rate: 7.7% Median Income: 58K Median Income: 64K Median Income: 59.6K 8. 10. 5. 6. ALBANY, NY 7. LANCASTER, PA 8. MADISON, Wn 9. GREEN BAY, WI 8. LINCOLN, NE Average Price: 193,100 Average Price: $179,300 Foreclosure Rate: 0.438% Price Appreciation Q-o-Q: -4% Price Appreciation Y-o-Y: -2.6% Population: 56K Unemployment Rate: 6.9% Average Price: $206,700 Foreclosure Rate: 0.313% Price Appreciation Q-o-Q: .9% Price Appreciation Y-o-Y: -2.6% Population: 220K Unemployment Rate: 7.5% Median Income: 67.8K Foreclosure Rate: 0.281% Average Price: $143,100 Price Appreciation Q-o-Q: -.2% Price Appreciation Y-o-Y: -.3% Population: 96K Average Price: $134,600 Foreclosure Rate: 0.798% Foreclosure Rate: 0.302% Price Appreciation Q-o-Q: -1.8% Price Appreciation Y-o-Y: -3.5% Population: 102K Unemployment Rate: 7.9% Median Income: 67.6K Price Appreciation Q-o-Q: -2.3% Price Appreciation Y-o-Y: -3.1% Population: 225K Unemployment Rate: 7.2% Median Income: 77K Median Income: 81.8K Unemployment Rate: 4.1% Median Income: 69.5K -3% .8% 2010 2011 2010 2011 MAY 2011 ANNUAL PRICE CHANGE JUNE 2011 ANNUAL PRICE CHANGE SPREAD OF EXISTING HOME PRICE CHANGES THE PRICE OF HOMES CHANGES SEASONALLY, SO DEPENDING ON THE TIME OF YEAR THE HOME IS PURCHASED, SAVINGS ON BUYING OVER RENTING CAN BE MUCH MORE SIGNIFICANT. THE FOLLOWING SHOWS YEAR-OVER-YEAR DATA FOR HOME PRICE CHANGES DURING THE LAST FOUR YEARS. 10 5 -5 -10 -15 -20 -25 MAY 07 JUL 07 SEPT 10 NOV 10 NOV 07 MAR 08 NOV 08 MAY 09 MAY 10 MAR II SOURCES: http://www.realtor.org/research/research/home_price_monitor_0711 https://www.efanniemae.com/sf/refmaterials/hudmedinc/ http://www.zillow.com/blog/2011-01-26/best-places-to-buy-in-2011/ http://www.nytimes.com/interactive/business/buy-rent-calculator.html?ref=economy http://www.census.gov/hhes/www/housing/hvs/qtr211/q211ind.html http://surveysez.com/joomla/index.php/lifestyle/115-cost-of-house.html http://insiderealestatenews.com/2011/05/rental-housing-at-record-low/ http://www.bizjournals.com/sacramento/news/2011/08/16/slideshow-cities-cheaper-buy-sacramento.html http://www.nytimes.com/2011/05/11/business/economy/11leonhardt.html VACANCY RATES SEPT 07 JAN 08 MAY 08 JUL 08 SEPT 08 JAN 09 MAR 09 JUL 09 SEPT 09 NOV 09 JAN 10 MAR 10 JUL 10 JAN II MAY II