News & Resources

More people buying than renting

Jun 04, 2012 Sean Albert

In a sign that the American economy is again gaining strength, citizens are tending to buy homes in urban areas rather than rent apartments. Yet these numbers also reflect the rising trend that rent is increasing, making affordable housing hard to find for many people. Trulia recently released the Winter 2012 Rent vs. Buy Index, which found most consumers are opting to purchase a living space. Buying a home was found to be more economically beneficial in 98 of the 100 cities surveyed. Detroit, Oklahoma City and Dayton rounded out the top three cities in which it makes more sense to buy rather than rent, in terms of finances. "As rents rise and prices stagnate, homeownership is becoming even more affordable, but rising rents create a dilemma for people who can't afford to buy yet," Trulia chief economist Jed Kolko detailed. There is a sizable population which may run into trouble when finances prohibit buying a house and rising rent payments prove hard to keep up with, potentially driving people into debt. Many renters may look into alternative finance solutions to fund housing endeavors. According to Power Short term Loan, some short-term loans are being used in emergency situations to cover a month's rent payment until a permanent fix appears. For some, using a loan based on the next expected payment from an employer can skirt fees or eviction notices late rent would cause.