• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

myHBliving

Coastal Lifestyle

  • Real Estate
    • Instant Home Value
    • Start a Home Search
    • Buyer’s Guide
    • Seller’s Guide
    • Communities
      • Downtown HB
      • Northeast HB
      • Northwest HB
      • South HB
      • West HB
  • Information Hub
  • Huntington Beach Living
    • Lifestyle
    • Outdoors
    • Restaurants
    • Events
  • Fundraisers
  • Contact

Is It Really Better To Rent Than To Own a Home Right Now?

March 6, 2023 by Megan Gullotta

Is It Really Better To Rent Than To Own a Home Right Now? Simplifying The Market

You may have seen reports in the news recently saying it’s better to rent right now than it is to own your home. But before you let that impact your decisions, you should understand what these claims are based on.

A lot of the time, these reports are assuming things that aren’t realistic for the average household. For example, the methodology behind one of those reports says that renting is the smarter financial option because of the opportunity to invest money elsewhere. It assumes renters take the money they’d spend on costs tied to buying a home and put it in an investment portfolio.

But here’s the thing – most people who rent aren’t making those investments. Ken Johnson, Co-Author of the BH&J National Price-to-Rent Index, explains:

“One of the difficulties with the rent and reinvest model is many people . . . simply rent and spend the difference. . . . That’s wealth destroying.”

The reason homeownership is one of the best investments you can make is the wealth it helps you build. That’s why there’s a significant difference between the net worth of the average homeowner and the average renter (see graph below):

Is It Really Better To Rent Than To Own a Home Right Now? | Simplifying The Market

So, before you renew your rental agreement, think about the opportunity to build wealth that homeownership provides.

Bottom Line

If you’re unsure whether to continue renting or to buy a home, let’s connect to help you make the best decision.

More Posts

Have You Thought About Why You Might Want To Sell Your House? [INFOGRAPHIC]

Why Buying a Home Is a Sound Decision

Reasons To Consider Condos in Your Home Search

The Role of Access in Selling Your House

Primary Sidebar

  • Facebook
  • Instagram
  • LinkedIn
  • YouTube

Categories

  • Fundraisers
  • Information Hub
  • Lifestyle
  • Local Events
  • Outdoors
  • Restaurants

Copyright © 2023 · Agent Focused Pro on Genesis Framework · WordPress · Log in

  • Email
  • Facebook
  • Instagram
  • LinkedIn
  • YouTube

Pinpoint Properties. Equal Housing Opportunity. Agent Lic. #01964682 | Office Lic. #01915697.
© Copyright 2023 myHBliving | Megan Gullotta. All Rights Reserved. Privacy Policy