Just last week we published, To Sell or Rent Your Louisville Home, That Is the Question! Today we’re looking at a similar topic just reversed. If you are currently renting your place here in Louisville, KY do the numbers indicate that you should continue to rent or buy a new home?
It turns out that Trulia has been tracking numbers on the Top 50 Cities in America. Here’s who they calculate their index.
The Rent:Buy Ratio is calculated by using the median list price compared with the median rent on two-bedroom apartments, condos and townhomes…
New York City is an obvious choice to rent rather than buy. That one was easy. But would you have guessed that the data says it’s far better to buy in cities like Las Vegas, Miami and Phoenix? Just goes to show that in some markets, the hyper-appreciation was quickly followed by large drops in home values.
Louisville was given a ratio of 15, somewhere in the middle of the spectrum where there’s no clear choice. Average rent prices for Louisville were listed at $500-$1,000 while median list price was $100k-$200k. I would expect a tighter data point but it was good to see job growth in Louisville at 2.5%, just behind Nashville but ahead of Indianapolis.
Unfortunately our Rent vs. Buy question isn’t clearly answered for Louisville—it depends on your personal situation. The piece does have a cool interface and other data points, so I encourage you to check it out.