Weighing the Options: Renting vs. Owning - Which Is Better Right Now?

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):

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.

114 Properties
Page 1 of 10
$1,895,000
Neighborhood: Oaks 2 Ph 1
4
Beds
3F11/2
Baths
3,464
Sq.Ft.
2014
Year Built
3
Days on Site
A4613147
MLS
$315,000
Neighborhood: Pine Run Ii
2
Beds
2
Baths
1,325
Sq.Ft.
1979
Year Built
4
Days on Site
A4613353
MLS
$600,000
Neighborhood: Bay Oaks Estates
4
Beds
2
Baths
1,867
Sq.Ft.
1996
Year Built
4
Days on Site
A4611341
MLS
$950,000
Neighborhood: Southbay Yacht & Racquet Club
3
Beds
3
Baths
2,513
Sq.Ft.
1987
Year Built
5
Days on Site
A4612015
MLS
$289,900
Neighborhood: Arbors
2
Beds
2
Baths
1,199
Sq.Ft.
1980
Year Built
13
Days on Site
A4611491
MLS
$1,050,000
Neighborhood: Meridian At The Oaks Preserve
3
Beds
3
Baths
2,594
Sq.Ft.
2004
Year Built
14
Days on Site
A4611618
MLS
$919,900
Neighborhood: Villas At Bellagio Harbor Village
3
Beds
2
Baths
1,988
Sq.Ft.
2006
Year Built
14
Days on Site
N6133146
MLS
$329,000
Neighborhood: Bay Street Village
2
Beds
2
Baths
1,135
Sq.Ft.
2014
Year Built
14
Days on Site
N6132954
MLS
$1,100,000
Neighborhood: Park Trace Estates
4
Beds
3
Baths
3,060
Sq.Ft.
2002
Year Built
15
Days on Site
N6133208
MLS
$925,000
Neighborhood: Hidden Bay
3
Beds
3
Baths
2,100
Sq.Ft.
1999
Year Built
19
Days on Site
A4612004
MLS
$1,100,000
Neighborhood: Rivendell Woodlands
4
Beds
3
Baths
2,928
Sq.Ft.
2002
Year Built
22
Days on Site
N6133115
MLS
$3,500,000
Neighborhood: Oaks
5
Beds
6F11/2
Baths
6,863
Sq.Ft.
1992
Year Built
23
Days on Site
A4611882
MLS

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