There have always been specific benefits to renting vs. buying, but it seems that the market is now turning to more evidentiary data to support this approach and narrowing it to certain circumstances and regions. Over the last few years it has been thought that it’s nearly always better to own your own home, mostly due to leaner lender requirements and relatively low mortgage rates.
However, now with the cost for building and buying a home as well as mortgage interest rates rising within the last year, more and more individuals and families are turning to renting for one very powerful and obvious reason: they can save money.
In addition to monthly savings, there is another benefit to renting vs. buying: it is now a better investment in many cases. According to research conducted by Florida Atlantic University and Florida International University faculty, “renting and reinvesting the savings from renting, on average, will outperform owning and building home equity in terms of wealth creation.”
Furthermore, our specific region has been called out for the same benefit, as the city of Houston was also recently placed on the list of best cities where it is more financially beneficial to rent than own a home. This shift in residential living habits is promising for those in the multi-housing investment and management community.
“This is the first time that renting has outperformed buying since 2010,” according to CNBC real estate reporter Diana Olick. With the prices of homes not expecting to go down anytime soon, this uptick in renting is a trend with likely staying power.
For more information on multi-family investing and management, contact CKR Property Management today.