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Dean Baker, co - director at the Center for Economic and Policy Research in Washington, D . C . , suggests that the buy -
Dean Baker, codirector at the Center for Economic and Policy Research in Washington, DC suggests that the buyversusrent question can be answered using the pricetorent ratio. Find two houses of similar size and quality in comparable neighborhoods, one for sale and the other for rent. Divide the price of the house for sale by the total cost of the rental for year. If the quotient is higher than renting might be the better option. If the quotient is below buying might be the better option.A house in Orlando, Florida, is priced at $ The rent on a comparable house is $ per month. Find the pricetorent ratio. Round your answer to one decimal place.Does the ratio suggest that you buy or rent a home in Orlando?
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