Renting Is Now Cheaper Than Buying in San Francisco
The sizzling buying market in SF has now turned another real estate law of gravity on its head: it’s now cheaper to rent than to plunk down the monthly mortgage on a house or condo in the city. According to Trulia’s latest research, people moving into SF or from one neighborhood to another in the city will be looking at renting as a more affordable option to buying. Of course, there’s no equity in renting, but individuals, couples and families can save by a monthly rent payment.
According to Trulia senior economist Cheryl Young, this is pretty unusual. She says, “For as long as we have run this report, renting has never been a better deal than buying. But this summer, driven by epic home price appreciation and lifeless rents, renting tips the scales over buying in San Jose and San Francisco.”
Young calculates that you can save 5.8 percent in San Francisco by going rental. Contributing to the situation is the job boom in San Francisco, with the city adding 19,100 jobs over the past year.