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.

111 Properties
Page 1 of 10
$1,950,000
Neighborhood: Oaks
4
Beds
3F11/2
Baths
4,135
Sq.Ft.
1994
Year Built
2
Days on Site
A4600134
MLS
$699,000
Neighborhood: Bay Oaks Estates
3
Beds
2
Baths
2,312
Sq.Ft.
1997
Year Built
4
Days on Site
A4599768
MLS
$2,400,000
Neighborhood: Sunset Place
4
Beds
4F11/2
Baths
4,747
Sq.Ft.
2003
Year Built
4
Days on Site
A4600621
MLS
$840,000
Neighborhood: Edgewater/Hidden Bay Bldg B Ph
3
Beds
2
Baths
1,937
Sq.Ft.
2019
Year Built
6
Days on Site
A4588243
MLS
Open 3/2
37 Bayhead Ln Osprey,  FL 34229
$777,000
Neighborhood: Oaks
3
Beds
2
Baths
2,168
Sq.Ft.
2001
Year Built
6
Days on Site
A4600903
MLS
$525,000
Neighborhood: Rivendell
2
Beds
2
Baths
1,604
Sq.Ft.
2000
Year Built
6
Days on Site
A4600898
MLS
Open 3/2
434 N Shore Dr Osprey,  FL 34229
$1,199,900
Neighborhood: Sorrento Shores
3
Beds
3
Baths
2,932
Sq.Ft.
1989
Year Built
7
Days on Site
N6131393
MLS
Open 3/3
1109 Scherer WAY Osprey,  FL 34229
$729,000
Neighborhood: Rivendell Woodlands
3
Beds
2
Baths
2,125
Sq.Ft.
2002
Year Built
7
Days on Site
A4599840
MLS
Open 3/3
260 Hidden Bay Dr #504 Osprey,  FL 34229
$1,050,000
Neighborhood: Edgewater/Hidden Bay Ph Ii Bld
2
Beds
2F11/2
Baths
1,950
Sq.Ft.
2019
Year Built
7
Days on Site
A4589709
MLS
$1,199,000
Neighborhood: Meridian At The Oaks Preserve
4
Beds
3
Baths
2,778
Sq.Ft.
2000
Year Built
8
Days on Site
A4600762
MLS
$438,880
Neighborhood: Bay Street Village
3
Beds
2
Baths
1,430
Sq.Ft.
2016
Year Built
10
Days on Site
A4600382
MLS
$1,100,000
Neighborhood: Park Trace Estates
5
Beds
4F11/2
Baths
3,420
Sq.Ft.
2003
Year Built
11
Days on Site
A4600014
MLS

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