Its safe to buy or rent ?

According to a report in local daily – in almost 90% of the country, the average rent is higher than the cost of buying a median-priced home. The exceptions are in the handful of highest-priced housing markets in the country like-San Francisco, New York and Arlington.

As per commercial real estate news Consistent job growth has made it possible for more people to rent their own apartments. Still, rising home prices are preventing many from buying.

Renting over Purchase

The national vacancy rate for apartments decreased from 8 percent to 4.1 percent from 2009 to 2013, At the same time, the average price of an existing U.S. House has risen about 14 percent, according to commercial real estate data provided by Reis Inc. to a newspaper report. People are discouraged to invest in Houses as a effect of housing market disaster of 2007. A burden of foreclosures forced many people to move out of their homes and into apartment leases. On the other side, construction of apartments was uphold until the last few years because many builders couldn't

get loans during the credit crisis.In certain places, this led to lease and a rise in rents. This was seen as opportunity for the landlords to increase rents in many markets.

The Calculation

Before your monthly cost comparison, there is a lot of math's required to call a real estate agent. For purchasing a house you need to pay at least 20 percent down payment. For many first-time buyers, pooling this amount can be difficult. The rent-versus-ownership analysis also states that you need to spend 0.35 percent of the amount of your mortgage on insurance and another 1.04 percent on property taxes. Maintenance cost and cost of other utilities consumed in the house is extra to the total amount.If you think you can get a loan easily as the price of house is less than its not a valid assumption especially if you're one of the 7 million former homeowners who lost their property to a foreclosure or short sale. Even if you're credit is solid, rising interest rates are lifting the income level you'll need to cover your monthly mortgage payment.

Minimum fuel required

But those are just the averages. In the priciest markets, you'll need to show a lot more income on your tax returns to get the nod from a mortgage company. In San Francisco, you'll need to earn $228,500 to buy a median-priced home. Other high-cost counties come with high minimums to qualify, including Marin County, Calif., ($178,000), San Mateo County, Calif. ($170,000), Arlington County, Va. ($158,500), Santa Clara County, Calif. ($149,500) and Hudson County, N.J. ($142,500).

As per the commercial real estate news affordability gap between rising rents, housing price and income of the people widens. More pressure is added on the U.S. economy, which relies primarily on consumer spending. Therefore in either of the way consumer will have to bear the burden.