It's still cheaper to buy a home than rent on in DC, according to a report published by Trulia.
Trulia's Rent vs. Buy Index, which launched in June 2010, calculates the price-to-rent ratio using the median list price for two-bedroom properties compared to the median rent for two-bedroom apartments, condos, and townhomes listed on the site. The index uses a rule of 15, which means that if the median list price divided by the annual median rent produces a score of 15 or less, the city is considered a good place to buy. The lower the number, the better the buy.
While the index does provide some perspective on the rent versus buy debate, an individual's decision as to whether buy a home requires taking a number of variables into account (property taxes, down payment, interest rates) for the total cost of ownership, a point that Trulia acknowledges.
Info Courtesy of Urban Turf
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