Condo Ownership Sensible in SF, San Jose and Oakland

by admin on May 4, 2011

The San Jose Mercury reported that data shows that buying condos, versus renting, makes financial sense in San Francisco, San Jose, and Oakland in this current market.

A study done by Trulia of the nation’s fifty largest cities focusing on rent-versus-buy price analysis revealed that these Bay Area cities, especially San Jose, ownership is less expensive.
They calculated a rent-to-buy ratio of cost, and any city with a rent-to-buy ratio of 15 or below means that it is less expensive to buy. San Jose’s ratio is 12-1.
Oakland and San Francisco, where renting is cheaper, can make more financial sense to buy depending on the situation. Oakland has a ratio of 16, and San Francisco 19.
To read more about the math behind the study, read the San Jose Mercury article here, or you can take a look at Trulia’s entire report of the fifty biggest cities in the country here.

Tagged as: California, home ownership, renting, statistics