Trulia’s Rent vs. Buy IndexApril 2011

Key National Findings

Key National Findings

• Current market conditions consisting of steadily rising rents, falling home prices and low mortgage rates have tipped the rent versus buy scale in favor of homeownership.

• Since last quarter, buying a home has become more affordable than renting in nearly four out of five (80%) major cities

Trulia’s Q2 2011 Rent vs. Buy Index Reveals Trend Towards Homeownership

 Top U.S. Cities Where Buying a Home Beats Renting

# City State Price:Rent RatioQ2 2011

Price:Rent RatioQ1 2011

Q-to-Q % Change

1 Las Vegas NV 6 6 -1%

2 Phoenix AZ 7 8 -9%

3 Arlington TX 7 7 2%

4 Fresno CA 8 11 -30%

5 Miami FL 8 6 22%

6 Mesa AZ 8 8 -1%

7 Jacksonville FL 9 8 2%

8 Sacramento CA 9 10 -4%

9 Detroit MI 10 12 -15%

10 Omaha NE 10 13 -25%

 Top U.S. Cities Where Renting Reigning Supreme Over Buying

# City State Price:Rent RatioQ2 2011

Price:Rent RatioQ1 2011

Q-to-Q % Change

1 New York NY 39 31 27%

2 Fort Worth TX 30 19 57%

3 Kansas City MO 22 21 4%

4 Los Angeles CA 20 20 3%

5 Memphis TN 20 20 -4%

6 Seattle WA 19 24 -20%

7 Boston MA 19 17 14%

8 San Francisco CA 19 21 -7%

9 Portland OR 18 18 1%

10 Oklahoma City OK 16 17 -7%

 U.S. Cities with Biggest Q/Q Movement in Favor of Homeownership

# City State Price:Rent RatioQ2 2011

Price:Rent RatioQ1 2011

Q-to-Q % Change

1 Fresno CA 8 11 -30%

2 Omaha NE 10 13 -25%

3 San Jose CA 12 15 -21%

4 Seattle WA 19 24 -20%

5 Cleveland OH 14 17 -15%

6 Detroit MI 10 12 -15%

7 Albuquerque NM 15 18 -14%

8 Minneapolis MN 13 15 -14%

9 Oakland CA 16 18 -14%

10 Tulsa OK 11 13 -12%

Key Regional Findings

• The cost of homeownership continues to be more expensive than renting; however, it may make more financial sense to buy depending on the situation.

Consumers Face Difficult Rent vs. Buy Decision in Coastal Cities

# City State Price:Rent RatioQ2 2011

Price:Rent RatioQ1 2011

Q-to-Q % Change

1 Los Angeles CA 20 20 3%

2 Seattle WA 19 24 -25%

3 Boston MA 19 17 14%

4 San Francisco CA 19 21 -7%

5 Portland OR 18 18 1%

6 Oakland CA 16 18 -13%

Extra

INTERACTIVE RENT VS. BUY MAPCheck out Trulia’s new interactive rent vs. buy map to see the differences between renting for a year and buying a similar two-bedroom apartment, condo or townhouse in America’s 50 largest cities. http://explore.trulia.com/datavis/rentvsbuy/Q2-2011/

RENT VS. BUY CALCULATORCompare the costs of owning versus renting a home with Trulia’s rent vs. buy calculator to see which option may be a better fit for your financial needs. http://www.trulia.com/mortgage-calculators/06/rent-or-buy/

Methodology

Trulia calculated the Q2 2011 price-to-rent ratio for the 50 largest U.S. cities using the median list price compared with the median rent on two-bedroom apartments, condominiums and townhomes listed on Trulia.com as of April 1, 2011.

 Sample Price-to-Rent Ratio Calculation:• Median List Price: $140,201.37• Median Rent: $1,871.65• Price-to-rent ratio: $140,201.37 ÷ ($1,871.65 x 12) = 6 Interpretation Key:• Price-to-Rent Ratio of 1-15: Owning a home is much less expensive than renting in this city.• Price-to-Rent Ratio of 16-20: The total costs of homeownership in this city are greater than

the costs of renting, but it might still make financial sense to buy depending on the situation.• Price-to-Rent Ratio of 21+: Renting in this city is much less expensive than owning a home. Definitions:• Total costs of homeownership include mortgage principal and interest, property taxes, hazard

insurance, closing costs at time of purchase and ongoing HOA dues and private mortgage insurance, where applicable. It also includes an offset for the tax advantages of homeownership, including mortgage interest, property tax and closing cost deductions.

• Total costs of renting include rent and renter's insurance.