12 cities: Where to buy and where to rent

While home prices have shot up 20% in the last year and manufacturing and auto jobs are beginning to rebound, it's still a better bargain to buy in Detroit.

Because the gap between rental and purchase prices remains wide, Detroit ranked seventh on Trulia's list of the best cities to buy.

"While prices have risen in the past year, prices overall are still on the low end and buyers have the opportunity to get into the market at a reasonable price," said Ken Shuman, a spokesman for Trulia.

NEXT: Seattle: Rent