SAVI Reports - Page 18

Economic data and realities can offer guidance at the regional level on whether a family is better off buying or renting. Trulia, a subsidiary of Zillow that provides local and regional data related to housing decisions, conducted a comparative analysis of major metropolitan areas that compared whether any individual region is better for buying or renting relative to other regions throughout the nation. homeownership, relative to renting, provides more benefit to the owner in Indianapolis than it does in 84 of the 100 largest cities). 9 While the actual benefits and costs will vary from person to person and family to family, homeownership in Central Indiana is likely to be a better value than homeownership in many other metropolitan areas. For the Indianapolis metro area, the report found that it was 40 percent cheaper for the average person to buy a home than it would be to rent; among the 100 largest metro areas, Indianapolis ranked 15th in the nation for the distance between buying versus renting (meaning In Indianapolis, and throughout the country, renters tend to be more costburdened than homeowners (Figure 7). This does not imply a causal relationship between the two, and these figures are sensitive to income more than tenure (whether you rent or own). Nevertheless, there may be advantages to owning relative to renting over the long term. Figure 7. Housing Cost Burden by Tenure 30% 25% 20% 23.4% 17.0% 24.0% 17.4% 24.5% 17.0% 24.6% 16.2% 15% 24.3% 15.3% 24.4% 14.2% 10% 5% 0% 2009 2010 2011 2012 2013 2014 Cost burdened Owners as % of Owner-Occupied Units Cost burdened Renters as % of Renter-Occupied Units Source: SAVI Community Information System, www.savi.org 9 The analysis skews toward favoring homeownership; also, the analysis is based on regional averages, which, as discussed is likely to vary widely from family to family. The analysis is more illustrative in placing the Indianapolis Metropolitan Statistical Area (MSA) within the broader national context. 14