10 U.S. Cities Where Renting Beats Buying Q2 2010

Source: Trulia.com | Photo: Michael Duva | Stone | Getty Images It's the age-old problem when looking for a place to live: buy or rent? To see which cities offer the best rental opportunities, real estate website Trulia.com conducted an analysis of the most advantageous ratios between rental prices and home values. Trulia looked at prices for two- bedroom apartments, condos and townhouses for sale and for rent in the 50 largest US metro areas. Total costs include rent and renter's insurance vs. buying a home, which includes down payment, mortgage principal and interest, insurance, closing costs, property tax and applicable tax deductions. The report found that the best places to rent are in urban job centers where rental demand remains high and where home values have declined only slightly. Other advantageous areas are cities that have experienced more stability in home prices over the past decade and have remained regional economic centers. To calculate the price-to-rent ratio, Trulia compared average monthly rent costs with average monthly home owner payments, arriving at a final number that identifies whether buying or renting offers a better value. According to Trulia, a price-to-rent ratio over 21 indicates the cost of owning a home is far greater than renting, a ratio of 15 or below tips in favor of ownership is, while a ratio of 16-20 is something of a toss up, depending on individual financial situations, although owning is generally more expensive in this mid-range. Trulia also concludes that although a city may have a renter-friendly price-to-rent ratio, it is not necessarily unwise to purchase a home there, as prices have fallen during the recession and real estate in these cities could be a potentially good long-term investment. So, which US cities offer the best renting opportunities right now? Click ahead to find out!Olick: Which Is Better Now, to Rent or Buy?By Paul ToscanoPosted 3 June 2010

Photo: Jeremy Woodhouse | The Image Bank | Getty Images Price-to-rent ratio: 18.5 Average home list price: $293,767 Average rental price: $1,324

Photo: Kevin Cooley |The Image Bank | Getty Images Price-to-rent ratio: 19.68 Average home list price: $246,895 Average rental price: $1,046

Photo: Jeremy Woodhouse | The Image Bank | Getty Images Price-to-rent ratio: 19.78 Average home list price: $396,409 Average rental price: $1,670

Photo: D. Falconer/PhotoLink | Photodisc | Getty Images Price-to-rent ratio: 20.16 Average home list price: $240,076 Average rental price: $992

Photo: Jeremy Woodhouse | The Image Bank | Getty Images Price-to-rent ratio: 21.38 Average home list price: $195,663 Average rental price: $763

Photo: Travelpix Ltd | Photographer's Choice | Getty Images Price-to-rent ratio: 21.55 Average home list price: $774,728 Average rental price: $2,996

Photo: Philip Kramer | The Image Bank | Getty Images Price-to-rent ratio: 22.41 Average home list price: $307,858 Average rental price: $1,145

Photo: Philip Kramer | Lifesize | Getty Images Price-to-rent ratio: 24.87 Average home list price: $461,330 Average rental price: $1,546

Photo: Joseph Sohm-Visions of America | Stockbyte | Getty Images Price-to-rent ratio: 26.41 Average home list price: $275,844 Average rental price: $870

Photo: Ludovic Maisant | hemis.fr | Getty Images Price-to-rent ratio: 32.59 Average home list price: $1,383,612 Average rental price: $3,538

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