Fallen home prices and record-low mortgage rates have pushed housing affordability to a 40-year high. Meanwhile, rental prices are continuing to rise at a fast pace, according to a new report released by Hotpads.com, a rental listing service.
Rental prices in 20 of the largest metro areas increased 3.75% in 2011, and prices are expected to continue to rise in 2012. Meanwhile, home prices fell by 1.83% in 2011, according to the report.
"In a lot of cases it's getting to a point where it makes more sense for people to buy because rent has been going up significantly faster, while home prices have been falling," Paul Gleger, author of the report, told AOL Real Estate.
In Denver, that is definitely the case - it is cheaper to buy and own than to rent.