The Perks of Buying over Renting

The Perks of Buying over Renting

Considering a home purchase? Despite potentially daunting mortgage rates, here are two compelling reasons why now could still be an opportune time to invest in your own property.

1. Home Values Typically Go Up Over Time

There's been uncertainty about home price trends lately. Nationally, they're still on the rise, as they typically do over the long term (see graph).

According to data from the Federal Reserve (the Fed), home prices have shown a consistent upward trend over the past six decades, with a notable exception during the 2008 housing crash. Despite occasional fluctuations, home values have generally increased. This underscores the advantage of homeownership over renting, as rising home prices, coupled with mortgage repayment, contribute to the accumulation of equity. The Urban Institute affirms this perspective:

“Homeownership is critical for wealth building and financial stability.”

2. Rent Keeps Rising in the Long Run

Here’s another reason you may want to think about buying a home instead of renting – rent just keeps going up over the years. Sure, it might be cheaper to rent right now in some areas, but every time you renew your lease or sign a new one, you’re likely to feel the squeeze of your rent getting higher. According to data from iProperty Management, rent has been going up pretty consistently for the last 60 years, too (see graph below):

So how do you escape the cycle of rising rents? Buying a home with a fixed-rate mortgage helps you stabilize your housing costs and say goodbye to those annoying rent increases. That kind of stability is a big deal.

Your housing payments are like an investment, and you've got a decision to make. Do you want to invest in yourself or keep paying your landlord?

When you own your home, you're investing in your own future. And even when renting is cheaper, that money you pay every month is gone for good.

As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR), says:

“If a homebuyer is financially stable, able to manage monthly mortgage costs and can handle the associated household maintenance expenses, then it makes sense to purchase a home.”

Bottom Line

IIf you're tired of the uncertainty of rising rent costs and are interested in the advantages of owning your own home, I'd love to discuss your options and help you explore the path to homeownership. Let's connect and start the conversation.