Foreclosures in Colorado have fallen to their lowest levels since the third quarter of 2008 and have fallen nearly 35 percent below 2009's third-quarter total when filings peaked at more than 12,000, the state of Colorado Division of Housing said today.
New foreclosure filings fell to 8,115 in Colorado during 2011's first quarter, falling 27 percent from 2010's first-quarter total of 11,136.
According to the report released Thursday by the division, foreclosure sales at auction, the event that completes the foreclosure process, also dropped during the first quarter, falling 16 percent from 6,686 to 5,606, year-over-year, for the first quarter.
"Mortgage services and lenders continue to process foreclosures at an unusually slow rate, and although we expected foreclosure activity to drop in the first quarter, it fell more than expected," said Ryan McMaken, Division of Housing spokesman. "That gives us hope for the future, but right now, foreclosure sales at auction aren't going away."
McMaken said that while several Colorado regions saw improvement during the first quarter, some parts of the state continued to see foreclosure growth.
All 12 of the state's metropolitan counties reported drops in foreclosure filings during the first quarter of 2011.
But the story was different for some Western Slope and mountain counties where a rise in foreclosures was experienced.
From the first quarter of 2010 to the same period this year, filings in Garfield County rose 26 percent. They also rose 37 percent in Alamosa County and 29 percent in Delta County.
"The Western Slope and the mountains in Colorado are still growth areas for foreclosures," McMaken said. "Mesa County finally saw some relief this past quarter with a drop in foreclosure filings, but places like Eagle, Garfield and Montrose (counties), we're seeing both increasing numbers, and some of the higher foreclosure rates overall."
Along the Front Range, Adams County filings fell 31 percent and Denver County fell 41 percent.
Thursday, May 5, 2011
Tuesday, May 3, 2011
Westminster Mall to be Razed for a new Downtown
Denver Post
The city of Westminster plans to demolish the blighted Westminster Mall to develop a downtown for the 100-year-old community.
At a special meeting Monday, the City Council unanimously approved a deal to pay $22 million to Westminster Mall Co., a partnership between Kansas City, Mo.-based Dreiseszun & Morgan and Dillard's. It expects to close on the property May 11 and demolish the buildings this year.
City officials are talking with developers about creating a dense downtown area for Westminster. They envision increasing the mall's 1.2 million square feet of retail space with up to 5 million square feet of offices, residences, restaurants and shops.
Over the past few years, Westminster has been positioning the area at West 92nd Avenue and Sheridan Boulevard for redevelopment. It acquired the vacant Macy's department store and Trail Dust Steak House in 2009. At the end of last year, it acquired Mervyn's. The entire site is 108 acres.
"Now we have a great new piece that's going to give us the feel of a little bit of downtown that we don't have," said Mayor Nancy McNally.
The acquisition includes all but the Sears store, the Brunswick Zone and a small office building, all of which will remain open. The city also plans to keep the J.C. Penney store open.
Westminster issued a request for proposals from developers nationwide more than a year ago and has since added more to the mix. City officials expect to select a developer and negotiate a deal this summer.
"The plan is for a developer to eventually own the site," City Manager Brent McFall said. "We don't want to own the property. Our function here was to consolidate the site."
Locating in the high-traffic U.S. 36 corridor at Sheridan, Westminster Mall opened in 1977 with 30 stores. Within 10 years, it became among the most popular malls in metro Denver, adding May D&F and Mervyn's in 1986, followed by J.C. Penney a year later.
At its peak, the mall had about 300 stores, a far cry from the 15 that remain open today.
The city and the current owner invested $10 million to renovate the mall in 2000-01.
Westminster is following the nationwide trend of "demalling" America. In the Denver area, the 1.5 million-square-foot Villa Italia mall was razed to make way for Belmar, a pedestrian-friendly shopping, office and retail development that bills itself as Lakewood's downtown. The old Southglenn Mall was transformed into the Streets at SouthGlenn, a 70-acre outdoor shopping, entertainment and residential area.
The city of Westminster plans to demolish the blighted Westminster Mall to develop a downtown for the 100-year-old community.
At a special meeting Monday, the City Council unanimously approved a deal to pay $22 million to Westminster Mall Co., a partnership between Kansas City, Mo.-based Dreiseszun & Morgan and Dillard's. It expects to close on the property May 11 and demolish the buildings this year.
City officials are talking with developers about creating a dense downtown area for Westminster. They envision increasing the mall's 1.2 million square feet of retail space with up to 5 million square feet of offices, residences, restaurants and shops.
Over the past few years, Westminster has been positioning the area at West 92nd Avenue and Sheridan Boulevard for redevelopment. It acquired the vacant Macy's department store and Trail Dust Steak House in 2009. At the end of last year, it acquired Mervyn's. The entire site is 108 acres.
"Now we have a great new piece that's going to give us the feel of a little bit of downtown that we don't have," said Mayor Nancy McNally.
The acquisition includes all but the Sears store, the Brunswick Zone and a small office building, all of which will remain open. The city also plans to keep the J.C. Penney store open.
Westminster issued a request for proposals from developers nationwide more than a year ago and has since added more to the mix. City officials expect to select a developer and negotiate a deal this summer.
"The plan is for a developer to eventually own the site," City Manager Brent McFall said. "We don't want to own the property. Our function here was to consolidate the site."
Locating in the high-traffic U.S. 36 corridor at Sheridan, Westminster Mall opened in 1977 with 30 stores. Within 10 years, it became among the most popular malls in metro Denver, adding May D&F and Mervyn's in 1986, followed by J.C. Penney a year later.
At its peak, the mall had about 300 stores, a far cry from the 15 that remain open today.
The city and the current owner invested $10 million to renovate the mall in 2000-01.
Westminster is following the nationwide trend of "demalling" America. In the Denver area, the 1.5 million-square-foot Villa Italia mall was razed to make way for Belmar, a pedestrian-friendly shopping, office and retail development that bills itself as Lakewood's downtown. The old Southglenn Mall was transformed into the Streets at SouthGlenn, a 70-acre outdoor shopping, entertainment and residential area.
Monday, May 2, 2011
10 Best and Worst States to Make a Living
by Kathy Kristof
Tuesday, April 12, 2011
The job market is finally picking up some steam, providing hope to long-suffering job seekers everywhere. But if you're among the applying masses, you probably want to do more than just get a job.
If you want to make a living -- in other words, make enough after tax and fixed expenses to prosper -- your chances of getting a job that pays enough to live in comfort varies dramatically based on the state where you live and work. MoneyRates.com pulled unemployment rates, average wages, tax rates and cost of living from all 50 states and found that the best places to find a job were not necessarily the best places to make a living.
The unemployment rate is only 3.7% in North Dakota versus 11% in Michigan, for example. But Michigan is a much better place to make a living, with "adjusted average income" of $37,427 versus $35,365 in North Dakota, according to MoneyRates. MoneyRates rankings are based on their analysis of what you have left to spend, after adjusting for paying your state taxes and dealing with the comparative cost of buying groceries and keeping a roof over your head, among other things.
Based on that analysis, where are the best and worst places to make a living?
The best, according to MoneyRates, is ...
1. Illinois: The adjusted average income is $41,987, thanks to reasonably high average wages, relatively low state income taxes and a reasonable cost of living.
2. Washington (state): The cost of living is higher than average, but so is the average wage and the state imposes no income tax. Adjusted average income: $41,456.
3. Texas: Also benefits from no state income tax. Adjusted average income: $41,427
4. Virginia: $41,120
5. Delaware: $39,105
6. Massachusetts: $38,665
7. Georgia: $38,228
8. Tennessee: $38,038
9. Colorado: $38,020
10. Minnesota: $37,721
Where are the worst states to make a living?
1. Hawaii: $22,108
2. Maine: $29,159
3. Montana: $29,496
4. California: $29,772
5. Vermont: $29,986
6. Oregon: $30,343
7. Rhode Island: $30,612
8. Mississippi: $30,953
9. West Virginia: 31,357
10. South Carolina: $31,636
Tuesday, April 12, 2011
The job market is finally picking up some steam, providing hope to long-suffering job seekers everywhere. But if you're among the applying masses, you probably want to do more than just get a job.
If you want to make a living -- in other words, make enough after tax and fixed expenses to prosper -- your chances of getting a job that pays enough to live in comfort varies dramatically based on the state where you live and work. MoneyRates.com pulled unemployment rates, average wages, tax rates and cost of living from all 50 states and found that the best places to find a job were not necessarily the best places to make a living.
The unemployment rate is only 3.7% in North Dakota versus 11% in Michigan, for example. But Michigan is a much better place to make a living, with "adjusted average income" of $37,427 versus $35,365 in North Dakota, according to MoneyRates. MoneyRates rankings are based on their analysis of what you have left to spend, after adjusting for paying your state taxes and dealing with the comparative cost of buying groceries and keeping a roof over your head, among other things.
Based on that analysis, where are the best and worst places to make a living?
The best, according to MoneyRates, is ...
1. Illinois: The adjusted average income is $41,987, thanks to reasonably high average wages, relatively low state income taxes and a reasonable cost of living.
2. Washington (state): The cost of living is higher than average, but so is the average wage and the state imposes no income tax. Adjusted average income: $41,456.
3. Texas: Also benefits from no state income tax. Adjusted average income: $41,427
4. Virginia: $41,120
5. Delaware: $39,105
6. Massachusetts: $38,665
7. Georgia: $38,228
8. Tennessee: $38,038
9. Colorado: $38,020
10. Minnesota: $37,721
Where are the worst states to make a living?
1. Hawaii: $22,108
2. Maine: $29,159
3. Montana: $29,496
4. California: $29,772
5. Vermont: $29,986
6. Oregon: $30,343
7. Rhode Island: $30,612
8. Mississippi: $30,953
9. West Virginia: 31,357
10. South Carolina: $31,636
Housing still best investment despite downturn: study
By Tim Gaynor
PHOENIX | Tue Apr 12, 2011 12:16pm EDT
PHOENIX (Reuters) - Even as a five-year slump in house prices drags on, eight-out-of-10 Americans say bricks and mortar remain the best long-term investment, according to a study released on Tuesday.
The survey by the Pew Research Center's Social and Demographic Trends project found that 81 percent of respondents see housing as the best investment a person can make, despite a slump in prices that has knocked nearly a third off home values since 2006.
"The resilience of the American public's belief in the investment value of home ownership is pretty impressive," Paul Taylor, the project's director and a co-author of the report, told Reuters.
"In modern economic history we've never had a five-year period where home values have fallen as long or as far as they have now," he added.
U.S. home prices were down by around 32 percent at the start of this year from their pre-recession peak in July 2006, according to the S&P/Case-Shiller Home Price Indices released late last month.
After a pause last year, prices fell again in the first quarter of this year, the Pew Research Center said.
The telephone survey was conducted among a nationally representative sample of 2,142 adults, between March 15 and March 29 this year.
It found that while the American public continued to believe in housing as an investment, there had been some falloff in the intensity of their faith.
It found that 37 percent "strongly" agreed that a home is the best long-term investment a person can make, while 44 percent "somewhat" agreed that homeownership is the best investment a person can make.
When the same questions were put to respondents in a CBS News/New York Times survey two decades ago, 49 percent "strongly agreed" that homes were the best investment, and 35 percent "somewhat agreed," the study noted.
Nearly half of all homeowners said that their home was worth less now than before the recession began in late 2007, the survey found.
Of that group, the overwhelming majority said it would take at least three years for values to recover, while nearly half said it would take at least six years to recover.
Among those whose homes have lost value, Westerners and Midwesterners were more pessimistic about a speedy recovery than those living in the South and East.
Nearly a quarter -- 23 percent -- of all homeowners said that if they had it to do all over again, they would not buy their current home.
(Reporting by Tim Gaynor; Editing by Jerry Norton)
PHOENIX | Tue Apr 12, 2011 12:16pm EDT
PHOENIX (Reuters) - Even as a five-year slump in house prices drags on, eight-out-of-10 Americans say bricks and mortar remain the best long-term investment, according to a study released on Tuesday.
The survey by the Pew Research Center's Social and Demographic Trends project found that 81 percent of respondents see housing as the best investment a person can make, despite a slump in prices that has knocked nearly a third off home values since 2006.
"The resilience of the American public's belief in the investment value of home ownership is pretty impressive," Paul Taylor, the project's director and a co-author of the report, told Reuters.
"In modern economic history we've never had a five-year period where home values have fallen as long or as far as they have now," he added.
U.S. home prices were down by around 32 percent at the start of this year from their pre-recession peak in July 2006, according to the S&P/Case-Shiller Home Price Indices released late last month.
After a pause last year, prices fell again in the first quarter of this year, the Pew Research Center said.
The telephone survey was conducted among a nationally representative sample of 2,142 adults, between March 15 and March 29 this year.
It found that while the American public continued to believe in housing as an investment, there had been some falloff in the intensity of their faith.
It found that 37 percent "strongly" agreed that a home is the best long-term investment a person can make, while 44 percent "somewhat" agreed that homeownership is the best investment a person can make.
When the same questions were put to respondents in a CBS News/New York Times survey two decades ago, 49 percent "strongly agreed" that homes were the best investment, and 35 percent "somewhat agreed," the study noted.
Nearly half of all homeowners said that their home was worth less now than before the recession began in late 2007, the survey found.
Of that group, the overwhelming majority said it would take at least three years for values to recover, while nearly half said it would take at least six years to recover.
Among those whose homes have lost value, Westerners and Midwesterners were more pessimistic about a speedy recovery than those living in the South and East.
Nearly a quarter -- 23 percent -- of all homeowners said that if they had it to do all over again, they would not buy their current home.
(Reporting by Tim Gaynor; Editing by Jerry Norton)
11 Cities Where Homes Sell the Fastest
Daily Real Estate News | April 27, 2011
California boasted the highest number of cities where homes tended to spend the shortest amount of time on the market last month, based on March housing data from Realtor.com.
In Oakland, Calif., the average days on the market for listings was 50 in March--the least amount of days for median days on the market for the 146 markets reviewed.
Nationally, the median for homes for days on the market was 160 in March, which is an increase of 40 percent in a year.
Here is a list of the cities with the fewest median days on the market from March:
Oakland, Calif.
Median days on the market: 50
Median list price: $319,000
San Francisco
Median days on the market: 63
Median list price: $639,000
Denver
Median days on the market: 66
Median list price: $259,900
Iowa City, Iowa
Median days on the market: 66
Median list price: $187,500
Los Angeles-Long Beach, Calif.
Median days on the market: 70
Median list price: $345,000
Stockton-Lodi, Calif.
Median days on the market: 70
Median list price: $175,000
Bakersfield, Calif.
Median days on the market: 70
Median list price: $141,500
San Jose, Calif.
Median days on the market: 71
Median list price: $470,000
Anchorage, Alaska
Median days on the market: 71
Median list price: $279,975
Fresno, Calif.
Median days on the market: 71
Median list price: $170,000
Tulsa, Okla.
Median days on the market: 71
Median list price: $147,900
Source: REALTOR® Magazine online (April 27, 2011
California boasted the highest number of cities where homes tended to spend the shortest amount of time on the market last month, based on March housing data from Realtor.com.
In Oakland, Calif., the average days on the market for listings was 50 in March--the least amount of days for median days on the market for the 146 markets reviewed.
Nationally, the median for homes for days on the market was 160 in March, which is an increase of 40 percent in a year.
Here is a list of the cities with the fewest median days on the market from March:
Oakland, Calif.
Median days on the market: 50
Median list price: $319,000
San Francisco
Median days on the market: 63
Median list price: $639,000
Denver
Median days on the market: 66
Median list price: $259,900
Iowa City, Iowa
Median days on the market: 66
Median list price: $187,500
Los Angeles-Long Beach, Calif.
Median days on the market: 70
Median list price: $345,000
Stockton-Lodi, Calif.
Median days on the market: 70
Median list price: $175,000
Bakersfield, Calif.
Median days on the market: 70
Median list price: $141,500
San Jose, Calif.
Median days on the market: 71
Median list price: $470,000
Anchorage, Alaska
Median days on the market: 71
Median list price: $279,975
Fresno, Calif.
Median days on the market: 71
Median list price: $170,000
Tulsa, Okla.
Median days on the market: 71
Median list price: $147,900
Source: REALTOR® Magazine online (April 27, 2011
Sunday, May 1, 2011
Colorado's urban areas fare better than some on keeping up with house payments
In Miami and Las Vegas, nearly one out of four borrowers were behind on their house payments by three months or more at the end of 2010, according to a new report from Foreclosure-Response.org.
Borrowers in Colorado's urban areas are doing a much better job of keeping up, although a significant share remain behind the eight ball.
Serious delinquency rates range from 8.1 percent of mortgage borrowers in Greeley to 3.5 percent in Boulder, with metro Denver at 6.8 percent. Foreclosure rates range from 4.4 percent of all mortgages in Greeley and Pueblo to 1.9 percent in Boulder, with metro Denver at 3.8 percent.
The good news is that borrowers in Colorado's metro areas are doing better at staying current than many parts of the country. The bad news: Delinquencies are still way too high for a healthy housing market, said Ryan McMaken, author of a quarterly state report on foreclosures from the Colorado Division of Housing.
"Generally speaking, Colorado isn't particularly notable for its foreclosure rates," he notes.
Florida is home to 15 of the 17 metro areas with the highest serious delinquency rates, defined as mortgages where a borrower is 90 days or more behind on payments.
Ninety days is considered a deep enough hole that borrowers can't dig out easily and get current. It is also the point where many mortgage servicers would start a foreclosure, although that threshold appears to be getting pushed further out.
"There are people who are a year delinquent and who are not in foreclosure," said Leah Hendey of The Urban Institute in Washington, D.C., which sponsored the study along with the Center for Housing Policy and the Local Initiatives Support Corp.
The rate of serious delinquencies nationally remains high at 9.7 percent, down from 10.4 percent in 2009.
"We don't have the escalation that we had in 2009," Hendey said. At the same time, more people appear stuck in limbo, way behind but not facing imminent eviction.
And there are pockets of strength, like Bismarck, N.D., where only one out of 50 households are seriously behind on their home loans.
The study's data, provided by LPS Applied Analytics, comes from mortgage servicers who handle about 70 percent of all mortgages in the country, Hendey said.
The report shows many subprime loans are still going into foreclosure, even though lenders stopped making those type of loans years ago.
One out of five subprime mortgages was in foreclosure in Grand Junction, while the rates for other Colorado metro areas ranged from 12.6 percent to 17.2 percent.
Grand Junction had the highest increase in serious delinquencies in Colorado and ranks 80th out of 366 metro areas for its growth in serious delinquencies from 2009 to 2010.
"The people in trouble are the ones who bought or refinanced anywhere from 2005 to 2007, and then had a job issue, marriage issue, health issue that caused them stress or loss of income," said David Durham, a broker associate at Bray and Co. in Grand Junction who specializes in reselling bank-owned properties.
But rising energy prices, which kept the region's housing market strong well into 2007, could cause drilling activity to pick up and boost demand.
The survey didn't cover rural areas, where about 12 percent of the country's foreclosures are located.
A March report from the Housing Assistance Council suggests that Colorado's rural counties may be faring worse on the foreclosure front.
Rural counties in Utah, Nevada, Georgia, Florida, Hawaii and Colorado had some of the highest foreclosure activity in 2010, the study found.
Aldo Svaldi: 303-954-1410 or asvaldi@denverpost.com
Borrowers in Colorado's urban areas are doing a much better job of keeping up, although a significant share remain behind the eight ball.
Serious delinquency rates range from 8.1 percent of mortgage borrowers in Greeley to 3.5 percent in Boulder, with metro Denver at 6.8 percent. Foreclosure rates range from 4.4 percent of all mortgages in Greeley and Pueblo to 1.9 percent in Boulder, with metro Denver at 3.8 percent.
The good news is that borrowers in Colorado's metro areas are doing better at staying current than many parts of the country. The bad news: Delinquencies are still way too high for a healthy housing market, said Ryan McMaken, author of a quarterly state report on foreclosures from the Colorado Division of Housing.
"Generally speaking, Colorado isn't particularly notable for its foreclosure rates," he notes.
Florida is home to 15 of the 17 metro areas with the highest serious delinquency rates, defined as mortgages where a borrower is 90 days or more behind on payments.
Ninety days is considered a deep enough hole that borrowers can't dig out easily and get current. It is also the point where many mortgage servicers would start a foreclosure, although that threshold appears to be getting pushed further out.
"There are people who are a year delinquent and who are not in foreclosure," said Leah Hendey of The Urban Institute in Washington, D.C., which sponsored the study along with the Center for Housing Policy and the Local Initiatives Support Corp.
The rate of serious delinquencies nationally remains high at 9.7 percent, down from 10.4 percent in 2009.
"We don't have the escalation that we had in 2009," Hendey said. At the same time, more people appear stuck in limbo, way behind but not facing imminent eviction.
And there are pockets of strength, like Bismarck, N.D., where only one out of 50 households are seriously behind on their home loans.
The study's data, provided by LPS Applied Analytics, comes from mortgage servicers who handle about 70 percent of all mortgages in the country, Hendey said.
The report shows many subprime loans are still going into foreclosure, even though lenders stopped making those type of loans years ago.
One out of five subprime mortgages was in foreclosure in Grand Junction, while the rates for other Colorado metro areas ranged from 12.6 percent to 17.2 percent.
Grand Junction had the highest increase in serious delinquencies in Colorado and ranks 80th out of 366 metro areas for its growth in serious delinquencies from 2009 to 2010.
"The people in trouble are the ones who bought or refinanced anywhere from 2005 to 2007, and then had a job issue, marriage issue, health issue that caused them stress or loss of income," said David Durham, a broker associate at Bray and Co. in Grand Junction who specializes in reselling bank-owned properties.
But rising energy prices, which kept the region's housing market strong well into 2007, could cause drilling activity to pick up and boost demand.
The survey didn't cover rural areas, where about 12 percent of the country's foreclosures are located.
A March report from the Housing Assistance Council suggests that Colorado's rural counties may be faring worse on the foreclosure front.
Rural counties in Utah, Nevada, Georgia, Florida, Hawaii and Colorado had some of the highest foreclosure activity in 2010, the study found.
Aldo Svaldi: 303-954-1410 or asvaldi@denverpost.com
Cheaper to Buy Than Rent in 78% of Major Cities
By Inman News, Thursday, April 28, 2011.
Inman News™
It is cheaper to buy a home than to rent one in 39 of the nation’s 50 largest cities, according to a quarterly report released today by real estate search and marketing site Trulia.
Trulia’s rent vs. buy index compared the median list price with the median rent on two-bedroom apartments, condominiums and townhomes listed on Trulia.com as of April 1, 2011, in the 50 most populous cities in the U.S. While 72 percent of the cities favored buying in the previous quarter’s report, 78 percent favored buying in this latest report.
“With home prices nearing a double dip and more foreclosures expected to flood the housing market over the next two years, the decision between renting and buying a home across most of the country has clearly moved in favor of buying,” said Ken Shuman, Trulia’s spokesperson, in a statement.
“As we head into the summer buying season, those looking to buy a home should be encouraged by improvements in the market and feel optimistic about their chances of finding an affordable home — much more so than in previous years.”
A price-to-rent ratio of 1 to 15 means that it’s much cheaper to buy than to rent in a particular city. A ratio between 16 and 20 means that it’s more expensive to rent than to buy, but, depending on the family’s situation, buying could “make financial sense,” the site said. Any ratio above 20 indicates that owning is much more costly than renting in a city.
Top 10 cities to buy vs. rent:
Rank City State Price-to-rent ratio
1 Las Vegas Nev. 6
2 Phoenix Ariz. 7
3 Arlington Texas 7
4 Fresno Calif. 8
5 Miami Fla. 8
6 Mesa Ariz. 8
7 Jacksonville Fla. 9
8 Sacramento Calif. 9
9 Detroit Mich. 10
10 Omaha Neb. 10
Source: Trulia
Most of the cities considered saw their price-to-rent ratios fall quarter-to-quarter. Fresno, Calif.; Omaha, Neb.; San Jose, Calif.; Seattle; Cleveland; and Detroit saw the biggest drops.
Rank City State Q2 2011 Q1 2011 % change
1 Fresno CA 8 11 -30%
2 Omaha NE 10 13 -25%
3 San Jose CA 12 15 -21%
4 Seattle WA 19 24 -20%
5 Cleveland OH 14 17 -15%
6 Detroit MI 10 12 -15%
Source: Trulia
Coastal cities dominated among those where renting is cheaper than buying, but consumers will have to decide if buying makes financial sense.
Rank City State Price-to-rent ratio
40 Oakland Calif. 16
41 Oklahoma City Okla. 16
42 Portland Ore. 18
43 San Francisco Calif. 19
44 Boston Mass. 19
45 Seattle Wash. 19
46 Memphis Tenn. 20
47 Los Angeles Calif. 20
Source: Trulia
The index considers the total cost of homeownership compared to the total cost of renting. Calculations for the total cost of homeownership include mortgage principal and interest, property taxes, hazard insurance, closing costs at time of purchase, homeowners association dues, and private mortgage insurance. The homeownership cost calculation also includes tax advantages from mortgage interest, property tax and closing-cost deductions.
Calculations for total rental cost include rent and renters insurance.
The total cost of homeownership was highest, compared to the cost to rent, in New York; Fort Worth, Texas; and Kansas City, Mo.
Top 10 cities to rent vs. buy:
Rank City State Price-to-rent Ratio
50 New York N.Y. 39
49 Fort Worth Texas 30
48 Kansas City Mo. 22
46 Memphis Tenn. 20
47 Los Angeles Calif. 20
43 San Francisco Calif. 19
44 Boston Mass. 19
45 Seattle Wash. 19
42 Portland Ore. 18
41 Oklahoma City Okla. 16
Source: Trulia
.
Inman News™
It is cheaper to buy a home than to rent one in 39 of the nation’s 50 largest cities, according to a quarterly report released today by real estate search and marketing site Trulia.
Trulia’s rent vs. buy index compared the median list price with the median rent on two-bedroom apartments, condominiums and townhomes listed on Trulia.com as of April 1, 2011, in the 50 most populous cities in the U.S. While 72 percent of the cities favored buying in the previous quarter’s report, 78 percent favored buying in this latest report.
“With home prices nearing a double dip and more foreclosures expected to flood the housing market over the next two years, the decision between renting and buying a home across most of the country has clearly moved in favor of buying,” said Ken Shuman, Trulia’s spokesperson, in a statement.
“As we head into the summer buying season, those looking to buy a home should be encouraged by improvements in the market and feel optimistic about their chances of finding an affordable home — much more so than in previous years.”
A price-to-rent ratio of 1 to 15 means that it’s much cheaper to buy than to rent in a particular city. A ratio between 16 and 20 means that it’s more expensive to rent than to buy, but, depending on the family’s situation, buying could “make financial sense,” the site said. Any ratio above 20 indicates that owning is much more costly than renting in a city.
Top 10 cities to buy vs. rent:
Rank City State Price-to-rent ratio
1 Las Vegas Nev. 6
2 Phoenix Ariz. 7
3 Arlington Texas 7
4 Fresno Calif. 8
5 Miami Fla. 8
6 Mesa Ariz. 8
7 Jacksonville Fla. 9
8 Sacramento Calif. 9
9 Detroit Mich. 10
10 Omaha Neb. 10
Source: Trulia
Most of the cities considered saw their price-to-rent ratios fall quarter-to-quarter. Fresno, Calif.; Omaha, Neb.; San Jose, Calif.; Seattle; Cleveland; and Detroit saw the biggest drops.
Rank City State Q2 2011 Q1 2011 % change
1 Fresno CA 8 11 -30%
2 Omaha NE 10 13 -25%
3 San Jose CA 12 15 -21%
4 Seattle WA 19 24 -20%
5 Cleveland OH 14 17 -15%
6 Detroit MI 10 12 -15%
Source: Trulia
Coastal cities dominated among those where renting is cheaper than buying, but consumers will have to decide if buying makes financial sense.
Rank City State Price-to-rent ratio
40 Oakland Calif. 16
41 Oklahoma City Okla. 16
42 Portland Ore. 18
43 San Francisco Calif. 19
44 Boston Mass. 19
45 Seattle Wash. 19
46 Memphis Tenn. 20
47 Los Angeles Calif. 20
Source: Trulia
The index considers the total cost of homeownership compared to the total cost of renting. Calculations for the total cost of homeownership include mortgage principal and interest, property taxes, hazard insurance, closing costs at time of purchase, homeowners association dues, and private mortgage insurance. The homeownership cost calculation also includes tax advantages from mortgage interest, property tax and closing-cost deductions.
Calculations for total rental cost include rent and renters insurance.
The total cost of homeownership was highest, compared to the cost to rent, in New York; Fort Worth, Texas; and Kansas City, Mo.
Top 10 cities to rent vs. buy:
Rank City State Price-to-rent Ratio
50 New York N.Y. 39
49 Fort Worth Texas 30
48 Kansas City Mo. 22
46 Memphis Tenn. 20
47 Los Angeles Calif. 20
43 San Francisco Calif. 19
44 Boston Mass. 19
45 Seattle Wash. 19
42 Portland Ore. 18
41 Oklahoma City Okla. 16
Source: Trulia
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