Three professors from Florida Atlantic University and Florida International University came up with a new index to examine if a current market is more buyer or renter friendly.
The Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index, named after the professors, is designed “to signal whether current market conditions favor buying or renting a home in terms of wealth creation over a fixed holding period in a particular market relative to historical market conditions and alternative investment opportunities,” Science Daily reports.
According to the BH&J Index, the U.S. as a whole and seven cities (Atlanta, Boston, Chicago, Cincinnati, Cleveland, Detroit, and New York City) are in strong buy territory.
In the markets of Dallas, Denver, and Houston, property pricing clearly out-paces rent.