The rent vs buy index is misleading. I used to live in Ann Arbor where rent is mediocre, but home prices are ridiculous. On paper the ratio still looks pretty g

The rent vs buy index is misleading. I used to live in Ann Arbor where rent is mediocre, but home prices are ridiculous. On paper the ratio still looks pretty good because the median rental property is downtown while the median home for sale is in the suburban neighborhoods. I was on the board of a downtown housing cooperative and the ROI on properties in the downtown area was nonexistent. I moved 5 miles to the east to rough around the edges Ypsilanti and the situation was completely reversed. You can have a house downtown paid off with 5 years of rent payments. Further out you go into the surrounding farmland, the lower rent becomes and the higher sale prices get.