SACRAMENTO — A new housing study shows that for most people in big cities, it's cheaper to rent than buy a home.
If you're on the fence about whether you should rent or buy a home, you're not alone.
According to a recent study from Redfin, there are only four major U.S. markets where it's cheaper to buy a home than rent, and Sacramento isn't one of them. In fact, it's toward the top of the list with cities like Denver and San Diego.
"We spoke to Sacramento-area housing analyst Ryan Lundquist who wasn't surprised by the findings.
"When I talk to tenants, when I talk to potential buyers, I mean everyone has this on their mind. It's the cost to purchase a house right now. It's really increased dramatically," he told CBS Sacramento.
Lundquist pointed out that mortgage rates have more than doubled in the past year and said sales volume is down 40%.
"We're really missing a huge chunk and that has to do with the struggle to afford," Lundquist said. "I think buyers have voted with their feet in that regard."
So what should you do if you're on the fence? Well, whether the market is bull or bear, there's never an easy answer. So talk to your realtor.
"We can never predict the future with anything in life, so I think buy if you're comfortable and buy if you can truly afford it," Lundquist said. "I think that's always my best advice, in any market. whether we're going up or down."
According to Redfin, the only large U.S. cities where it's cheaper to buy than rent are Detroit, Philadelphia, Cleveland and Houston.
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