It makes more sense to buy a home in Miami rather than to rent, according to a new report from Trulia, which ranks Miami as the nation's top buyer's market. 

Is there any upside to having a sky-high foreclosure rate, double-digit unemployment and a tight credit market? According to a respected real estate firm, these elements help make Miami the top market in the nation to buy a home rather than to rent.  

Miami has moved up two spots since last year to become the nation's most attractive market to become a homeowner rather than renting, a new report by real estate research firm Trulia found. The study, released Monday, compared home prices and rental rates in the nation's 50 largest cities to determine where homeownership made the most financial sense. 

Potential buyers are starting to take note of South Florida's shifting buy-vs.-rent dynamic. Arden Shank, director of Neighborhood Housing Services of South Florida, said first-time homebuyers from Broward and Miami-Dade counties are flooding his office.  

“We have more families coming through the homebuyers preparation process than we have ever had,” he said. “A lot of people who were priced out of the market before can now afford to buy a home.” 

Trulia came up with the ranking by comparing the cost of buying a median-priced 2-bedroom, 2-bath home with the cost of renting a similar property for a year. Cities were ranked as either “buy” or “rent'' based on the ratio of buy-to-rent costs.  

For example, the median-priced 2-bedroom in Miami costs $140,201, according to the website. To rent a 2-bedroom apartment for a year would cost $22,459, resulting in a buy-to-rent ratio of 6 (Trulia rounds to the nearest whole number). In other words, renting a home for six years would cost about as much as buying a home free-and-clear. The markets where it makes the least financial sense to buy -- places like New York and Seattle -- have buy-to-rent ratios as high as 31. Any ratio below 15 was considered a buyer's market.

The report factors in costs associated with homeownership like interest, insurance, and property taxes. Even with the additional costs, buying a home is more affordable than renting in 72 percent of the nation's largest cities. The cities where homeownership is a particularly desirable option are places struggling with high unemployment and foreclosures -- areas like Phoenix, Jacksonville and Fresno.  

Trulia found in the midst of the buyer's market, renting is becoming more popular and more costly at the same time. 

“Since the start of the `Great Recession,' many former homeowners have flooded the rental market. Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets,” said Pete Flint, CEO and co-founder of Trulia, in a statement.  

Source: BY TOLUSE OLORUNNIPA

tolorunnipa@MiamiHerald.com               

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