Rising house prices and flattening rents have made the choice between buying and renting more of a toss-up in a few expensive markets.
Trulia reports that while it is still cheaper to buy than rent in all of the 100 largest metros in the nation, home values have increased in all 100, but rent price growth has increased in only seven.
If mortgage interest rates continue to rise, it may soon be cheaper to rent in markets such as San Jose, San Francisco, and Honolulu. Oakland, Orange County, Calif., and New York City also have smaller edges in the decision of buying over renting.
However, it still is at least 40 percent cheaper to buy than rent (based on seven years of renting or buying a home with 20 percent down and a 30-year fixed rate mortgage) in 32 markets, with the greatest discrepancies in Baton Rouge, La., Philadelphia, New Orleans, Columbia, S.C., and Fort Lauderdale, Fla.