Forbes says Orlando and Miami are two of the best places to rent a home rather than buy one because renting is cheaper than buying. The story says a new generation may not see home buying as a goal as previous ones did.
New construction of rental homes is also up, so rentals will remain available and comparatively affordable,
Forbes says. Denver, Milwaukee, Tucson, Ariz., and Chicago also made
the list of most affordable rentals. Cleveland is an example of a city where it may be cheaper to buy then to rent.
In a soft market, possible home buyers may choose to rent instead of paying a down payment, for fear of losing money on their investment. Others may have trouble saving enough for a down payment.
Tom Brink, vice president and co-leader of the residential sector at global design practice RTKL, based in Dallas, says that Millenials -- or children of the baby boomers -- aren't earning enough to buy up existing inventory.
"Unlike their parents, who bought up condos a few years back with luxury amenities, this generation is still being paid entry-level salaries," says Brink. "They can't afford a down payment on a home."
Other than the money it saves folks initially, renting has other advantages. For one, maintenance fees are included in each monthly outlay, which means there is no need to hire a plumber if the toilet overflows. What's more, the hidden costs associated with buying a home, such as condominium association fees and annual upkeep, are factored out.
To compile the list, Forbes used rental data provided by a California real estate brokerage company, Marcus & Millichap, and mortgage data from the National Association of Realtors.
