Housing Bubble Benefits
G. Pascal Zachary, a journalism fellow at the German Marshall Fund, writes in today's San Francisco Chronicle that it's better to rent than own in today's Bay Area market:
I'm making a killing in the housing market -- as a renter.Be sure to read the entire story at this link
After 15 years as a homeowner in the Bay Area, I've cashed out and taken advantage of a bizarre situation: Homes that sell for a fortune are available to rent for as little as $1,500 a month, less than half the cost of ownership, even after factoring in the tax benefits from the federal mortgage-interest deduction.
Of course, homeownership remains the American Dream, but the reality is that renting is a better deal, especially in the Bay Area, where the cost gap between being an owner and being a renter is probably the largest in the country.
The disparity stems from an unprecedented occurrence: As home prices have soared in the Bay Area over the past four years, rents have fallen an average of about 15 percent and sometimes much more.
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— The Boy in the Big Housing Bubble
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