Buy vs rent?

For the buy versus rent debate, this chart (recently published by the National Association of REALTORS® Research Department) is a good one to share. It shows how homeowners on average have far greater net worth than renters—ranging between 31 and 46 times greater over the last 12 years.

Chart showing Average Net Worth: Renters vs. Home Owners

Here are a few more factors in favor of buying:

Tax breaks. Homeowners can take advantage of federal income tax deductions on property taxes and mortgage interest.

Rent typically increases each year, a fixed-rate mortgage doesn’t. The monthly payment for a homebuyer with a 30-year, fixed-rate mortgage will remain the same. Plus, today’s record low rates make this monthly payment even more affordable.

You get to make the decisions. When you own a home you can decorate, make home improvements, and landscape your property as you wish.

Neighborhood stability and social involvement. Studies have shown that homeowners establish roots in a neighborhood and participate more in the local scene through volunteerism, political activities and organizations such as neighborhood crime watch and local school parent-teacher groups.

This entry was posted in Housing Market, Uncategorized by Ann Londrigan. Bookmark the permalink.

About Ann Londrigan

Ann Londrigan is Director of Association Outreach and Marketing for the Illinois Association of REALTORS®. She is responsible for increasing member engagement in and awareness for IAR Governmental Affairs and the RVOICE program as well as increasing participation in the REALTORS® Political Action Committee. She is responsible for overall marketing plans for IAR member benefits, educational products and events and is the content manager for IAR's Facebook page and LinkedIn discussion group. She manages the IAR Welcome Center, serves as staff liaison to the University of Illinois Regional Economics Applications Laboratory, and coordinates the IAR housing stats program.

One thought on “Buy vs rent?

  1. This is a great point. I’m currently working with a buyer who has “Buyer’s Remorse” and doesn’t feel she should go through with our contract which was just accepted today! All these are great points which I addressed with her but one area I think they have over looked is inflation. Typically inflation is around 3% annually and with interest rates as low as 4.0-4.5 with in the last few months. After a few year she is basically borrow money for free.

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