On 2/25/09, WSJ reported that the cost of owning a home, relative to renting, has fallen sharply...with some markets at their historical averages. Detroit's ratio (home price to annual rent) was presented in a chart at around 10 times in the third quarter of 2008 compared to around 14 times in the fourth quarter of 2005.
"We're not saying on an absolute basis that it's cheaper to own a home, but on a relative basis...owning is looking much more attractive than it has in a long time," said Andrew McCulloch, a Green Street analyst."
To read the article, go to http://tinyurl.com/c6ej45.
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