fbpx

Compare Listings

Is It Better To Rent Than Buy a Home Right Now?

You may have seen reports in the news recently saying it’s more affordable to rent right now than it is to

Imagine you purchased a home for $400,000 at the start of this year. Chances are, since you bought, you plan to stay put for a while. Based on the HPES projections, if you live there for 5 years, you could end up gaining over $83,000 in household wealth as your home grows in value.

Here’s how that stacks up compared to renting, using the overall median rent from above:

 

While you may save a bit on your monthly payments if you rent right now, you’ll also miss out on gaining equity.

So, what’s the big takeaway? Whether it makes more sense to rent or buy is going to vary based on your personal finances. It’s not a good idea to buy if the numbers truly don’t work for you. But, if you’re ready and able, adding equity as the final puzzle piece may be enough to help you realize buying is a better move in the long run.

Bottom Line

When it comes down to it, buying a home gives you a benefit renting just can’t provide – and that’s the chance to gain equity. If you want to take advantage of long-term home price appreciation, talk to a local real estate agent to go over your options.

img

Natalie Martinez

Related posts

Is It Better To Rent or Buy a Home?

You’ve probably asked yourself lately: Is it even worth trying to buy a home right now?With high...

Continue reading
by Natalie Martinez

Many Veterans Don’t Know about This VA Home Loan Benefit

For 80 years, Veterans Affairs (VA) home loans have helped countless Veterans buy a home. But even...

Continue reading
by Natalie Martinez

Common Real Estate Terms Explained

If you're a first-time homebuyer, chances are you'll come across some terms you’re not familiar...

Continue reading
by Natalie Martinez