Renting a home is more cost effective than buying one in 98 out of 100 cities with the most retirees, according to Trulia’s most recent Rent vs. Buy report.
While buying may be cheaper than renting by about 41.8% for retirees in all major metro areas, there is one exception. For those choosing to buy in retirement for the purpose of leaving an inheritance, it's better.
This difference is due to the value of equity in a home, according to the report. The value of home equity is a significant contributor to the financial benefits of homeownership; therefore if retirees don’t care about leaving an inheritance, the value of homeownership falls significantly.
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(Source: Trulia)
Click to Enlarge
(Source: Trulia)
