Why Buying a Home Might Make More Sense Than Renting
The rising price of homes has some wondering if it makes more sense to rent or buy. Simultaneously, rental prices have also skyrocketed. A recent article from realtor.com says:
“The median rent across the 50 largest US metropolitan areas reached $1,876 in June, a new record level for Realtor.com data for the 16th consecutive month.”
These rising prices will likely impact your housing plans, but there are a few key differences that could make buying a home a better option over renting.
Homeownership Provides Stability and a Chance To Grow Your Wealth
Owning a home has two key benefits: payment stability and equity.
With inflation, prices rise across the board for things like gas, groceries, and more. Locking in your housing payment, can provide greater long-term stability and help shield you from those rising expenses moving forward, renting doesn’t provide that same predictability.
A recent article from CNET explains it like this:
“...if you buy a house and secure a fixed-rate mortgage, that means that no matter how much prices or interest rates go up, your fixed payment will stay the same every month. That's an advantage over renting since there's a good chance your landlord will raise your rent to counter inflationary pressures.”
Another benefit of owning a home, you have the chance to build equity. As you pay down your home loan over time and as home values continue to appreciate, so does your equity. That equity can make it easier to fuel a move into a future home if you decide you need a bigger home later on. CNET also explains the value of homeownership:
Bottom Line
With home equity and a shield against inflation on the line, it may make more sense to buy a home if you’re able to. When you have questions about home ownership, I’m happy to meet with you over the phone or in person.