Rent vs. Own?

As reported in the Atlanta Business Chronicle, apartment list.com just published average rental rates for major US cities including Atlanta.  Some highlights for October include the following:

- Atlanta 2 bedroom rents averaged $1,050. This makes Atlanta the 22nd most expensive major US city with an average price that is 11% above the national average.  Across the Atlanta metro, rents average $850 for a 2 bedroom.

- In October, 2 bedroom rents were up 5.4% year over year, which is 2.2x average growth nationwide. Expensive suburbs like North Druid Hills and Sandy Springs have seen growth rates in the 8% range.

- The most expensive Atlanta suburb is Dunwoody where average 2 bedroom rents were $1,330 for October. That’s 40% above the national average of $950 and 56% above the metro average of $850.

As a comparison. At an interest rate of 4%, the payment on a 30 year mortgage for a $260,000 house (assuming a 20% down payment) would be roughly $1,000 per month.  While this doesn't include taxes or insurance, a homeowner would be gaining over $300 per month in equity!