Benefits of Owning Versus Renting

As the cost of renting skyrockets an average of 13% YOY, the time to buy is now. Research consistently shows that homeownership is an important way to build wealth. A homeowner’s net worth is over 40xs greater than a renter’s. So stop renting and start dreaming. Get started on the buying process now, so you can invest in your family and your future and make your money work for you. Even if you may not be ready to buy now, I am happy to set up a free property search, so you will automatically get emailed any time a new property comes on the market that meets your criteria.

Real estate is one of the time-honored inflation hedges. It’s a tangible asset, and those tend to hold their value when inflation reigns, unlike paper assets. More specifically, as prices rise, so do property values.

-Mark P. Cussen, Financial Writer, Investopia

Chart comparing rental price appreciation with core inflation from 1973 to 2020; rent increases exceed inflation most years.

Area chart showing median asking rent rising from about $340 in 1988 to $1,250 in 2022 Q1.

Homeownership is regarded as causing an improvement in the quality of life of a typical family. It is the most common method for such a family to build wealth…that can be used for retirement or other needs, including the next generation. Such wealth creation, therefore, provides major social as well as economic benefits.

-Don Layton, Senior Industry Fellow, JCHS

Chart: real estate leads long-term investments at 45%, followed by stocks and mutual funds at 24%.

Chart shows family wealth rising for homeowners while renter wealth stays near $6,000 from 2010 to 2019.

Experts don’t believe the market is in a bubble or a crash is in the cards like during the Great Recession. The nation is still suffering from a housing shortage that reached crisis proportions at a time when many millennials are reaching the age when they start to consider homeownership. That’s likely to keep prices high.

-Realtor.com