Renting Now More Expensive Than Buying

Home prices have fallen so much in recent months that in July, buying a two-bedroom house was cheaper than renting in 74 percent of the country's 50 largest cities, according to real estate website Trulia. The top five cities where buying is cheaper than renting are Las Vegas; Detroit; Mesa, Arizona; Fresno, California; and Arlington, Texas.

Homebuying is becoming a more attractive option for consumers, with plummeting home prices and low interest rates. However, while buying a home in the slumping economy still isn't easy, Ken Shuman, head of Trulia communications said.

"While recent stock market volatility on top of the slow economic recovery makes homebuyers nervous, it has not destroyed the American dream of homeownership," he said in a press release. "[However], many banks are actually less enthusiastic about approving residential mortgage applications, which has dragged out the home buying process. Until a middle ground on lending practices can be met, many highly-qualified buyers may be forced to be renters by choice for now."

Key factors to determine whether renting or buying is best for you include: how long you plan to stay, whether you have cash for closing, whether you can afford all homeownership costs and whether you can claim tax advantages associated with owning a home, CNN reported.