Cities Where It’s Cheaper to Rent than Buy

In several pricey cities, renters have the advantage. For example, it’s 5 percent cheaper to be a renter than a homeowner in Honolulu.

Cities like the Hawaiian capital, where there are space limitations, are experiencing escalating home prices. “There are natural supply constraints and a huge surge in demand,” Trulia housing economist Ralph McLaughlin told CNN Money.

Here are the top five cities where renting is either cheaper or not much different financially than buying, according to data from Trulia:

1. Honolulu, Hawaii (Renting is 5 percent cheaper) http://www.trulia.com/for_rent/Honolulu,HI/
2. San Jose, Calif. (Renting is 2 percent cheaper) http://www.trulia.com/for_rent/San_Jose,CA/
3. Orange County, Calif. (Buying is 5 percent cheaper) http://www.trulia.com/County/CA/Orange_Real_Estate/
4. San Francisco, Calif. (Buying is 7 percent cheaper) http://www.trulia.com/CA/San_Francisco/
5. Oakland, Calif. (Buying is 7 percent cheaper)

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