Owning Is More Affordable Than Renting in Much of the Country

What Does This Mean for You?

As the data shows, rents are skyrocketing. The big difference between renting and owning a home is, when you rent, that rising cost benefits your landlord’s investment strategy, but it doesn’t deliver any sort of return for you.

In contrast, when you buy a home, your monthly mortgage payment works like a forced savings account. Over time, as you pay down your loan and as home values rise, you build equity (and by extension, your own net worth). According to the latest data from CoreLogic, the average homeowner gained $56,700 in equity over the past year, a number that continues to grow as home values appreciate.

This should give you peace of mind that your investment is worthwhile. Not to mention, when you buy, you lock in your monthly mortgage for the duration of your loan, creating a stable and predictable monthly payment, even in today’s inflationary times.

When asking yourself if you should continue renting or if it’s time to buy, think about what Todd Teta, Chief Product Officer at ATTOM Data, says:

“. . . Home ownership still remains the more affordable option for average workers in a majority of the country because it still takes up a smaller portion of their pay.”

If buying takes up a smaller portion of your pay and has financial benefits renting can’t provide, the question becomes: is renting really worth it?

Bottom Line

If you’re renting today, but thinking about buying a home, it’s important to look at the full picture. While buying can feel like a big decision, having a trusted advisor on your side is key. Let’s connect to explore your options so you can learn more about the benefits of homeownership.