According to Forbes.com Denver is ranked #5 on the list of “U.S. Cities Where Renters Should Buy.”
Behind the numbers To find cities where it’s a good time to go from renting to buying, we used data from Witten Advisors, which calculated the premium to buy for 42 Metropolitan Statistical Areas across the country using data from the U.S. Census, the National Association of Realtors and a blended average of fixed- and adjustable-rate mortgages from the Federal Housing Finance Agency, which oversees and regulates lenders. We compared the premium in the third quarter of 2009 with the average premium over the last 15 years to find the biggest drops. We also wanted to pinpoint markets where home buying is a smart investment, so we factored in the five-year forecast in the S&P/Case-Shiller Home Price Index from Moody’s Economy.com. The cities on our list have some of the biggest discounts on the premium to buy coupled with big projected increases in home prices over the next five years.