Is it smarter to rent or to buy? Let’s look at the numbers.
There are at least five big differences between renting vs owning a house:
1. Rents keep rising.
There are times when renting makes more sense–like when a renter needs to live somewhere short-term–but rents have been steadily climbing for more than 30 years.
2. Rental agreements are subject to change.
Landlords can change their policies when it suits them: A pet could suddenly be deemed unwelcome, putting a renter in a tight spot.
3. Owning is cheaper.
Owning a median-priced home is more affordable than renting in the majority of counties in the U.S. (This reflects early 2022 numbers.)
4. Owning builds prosperity.
Owning a home doesn’t just provide a place to live–it also builds a long-term investment. In the past year, the avg. homeowner has accumulated $55,300 in equity.
5. Owning gives you creative control.
In a recent study, 63% of people said they want to own because they’ll gain more flexibility over their space.
Intended for educational purposes only. Please consult a trusted professional as personal circumstances may vary. Sources: U.S. Census Bureau/ATTOM Data/CoreLogic/LendingTree, 2022.
