You’re better off renting with a roommate than buying your first home alone in cities such as San Jose and San Francisco, California, and Austin, Texas, according to a recent report by online real estate site, Trulia.
When conducting their analysis, Trulia assumed buyers would be taking on a 30-year fixed rate loan, front a 20 percent down payment, and stay in the same place for seven years. Their calculations used median rent and median starter home prices.
Renting with a roommate is overwhelmingly the better option over buying a starter home in the nation’s two most expensive markets. In San Francisco, the savings from renting compared to buying is 16.5 percent.