Buying Home Cheaper Than Renting in Most Cities

New York, NY, Aug. 16, 2011 -- Falling home prices combined with strong demand for rental property have made it cheaper to buy a two-bedroom home than to rent one in most major U.S. cities, according to real estate website Trulia.

The firm said that buying was cheaper than renting in 74% of the country's 50 largest cities in July, compared to 12% of the cities where renting was cheaper. In the remaining 14% of cities, renting was less expensive but close to the cost of buying.

In addition, historically low interest rates have increased affordability. The recent rate for a 30-year fixed was just 4.19% on Monday.