Any renter with a stable job and the desire to become a homeowner and live in Phoenix for a long time should be buying a home right now because affordability has never been better (our analysis goes back to 1981). In 2006, owning a typical detached resale home was $600 per month more expensive (after taxes) than renting a Class A apartment.

-134 metro areas are at their historical best affordability level since 1981

Today, owning is $118 per month cheaper. Rents and home prices are both likely to fall in 2009, but the prospective homeowner who hopes to buy a home at the bottom is taking a huge risk that he or she will be able to qualify for a mortgage, not only because mortgage rates are currently at historic lows, but the high LTV (loan-to-value) programs that are currently backed by the government may no longer exist.

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