With a thriving housing market and inflation on the rise, the ongoing debate of homeownership versus renting is as heated as ever. However, with the average home selling at 19% higher than years prior, according to the Case-Shiller U.S. National Home Price NSA Index, the drastic growth in the housing market over the last two years could prove to be a deal-breaker in the longstanding debate.
As a result, many are deciding to rent instead of buy in response to the low inventory and high cost of homeownership nationwide. After all, with home prices at an all-time high, can the value of your home really increase much further?
Historically, buying a home could be the more affordable option over a longer period of time, but in the current housing market and with inflation at an all-time high, renting just may be your best option yet.
“Homes are expensive now ... but for most people, the comparison that is most important is how that cost of homeownership is going to compare to the cost of renting,” says Jeff Tucker, Zillow’s senior economist, in a recent interview with CNBC. That being the case, experts predict that in 2022, the average American won’t have as much disposable income to invest in purchasing a home, especially with decreased discretionary income, increased mortgage rates, increased inflation, and the unpredictable costs of long-term home repair and maintenance. In contrast, while rental prices may rise with inflation in 2022, renters have the advantage of a short-term financial commitment with minimal up-front costs, increased financial flexibility, and consistent, predictable monthly rates.
One of the significant benefits of renting a home during these uncertain times is that you are not required to pay the taxes and unexpected fees (HOA and Municipal) often associated with the home. Renting a home can provide residents with peace of mind, knowing that, unlike buyers, should any emergency maintenance issues arise, they are not required to cover maintenance costs. Instead, renters simply need to call their property management company and inform them of the issue, which is then often resolved quickly and efficiently. In comparison, homeowners should be prepared to financially invest considerable funds in emergency home maintenance and repair throughout the years. For the most part, while owning a home can allow for unique opportunities not always readily available to renters, renting a home is generally a more stress-free living experience.
Another wonderful benefit to renting in 2022 is the ability to strategically relocate quickly and efficiently. Let’s just say you just got a new job in a new location, rather than going through the hassle and stress of preparing your home to sell (renovating/updating as needed, deep cleaning, etc.), putting it on the market, and waiting for a buyer, a renter can generally move out of their rental home within a two to three week period, if needed. Some rental companies (like ResiHome) even offer current residents the convenient option of simply transferring rental homes, thus minimizing the resources and energy required to move to a new location with a new property management company. With more U.S. households renting now than ever before, builders and rental companies alike are stepping it up a notch by providing renters with brand-new rental homes in dedicated rental communities, making it wonderfully simple to rent a beautifully designed, newly-built home at an affordable price.
Ultimately, while renting a home in the current economy has strong arguments, the reality is that the answer to which living option is “better” is going to look different for everyone, depending on varying needs and preferences. Industry experts agree that the best approach to buying or renting comes down to the individuals involved and what works best for them. As such, we encourage potential buyers and aspiring renters to carefully consider both sides of the argument so that they can make an informed decision that better aligns with their current life goals.
Whatever your current life goals may be, here at ResiHome, we make it easy for everyone to find their ideal home by offering great rental opportunities to residents seeking high-quality single-family homes at an affordable monthly rate in great locations nationwide. Whether you’re looking for a beautiful newly-built home in a growing suburb or a great renovated property in a well-established neighborhood, ResiHome has it all! Click the button below to learn more about why you should consider renting with ResiHome!
August 2021 | ResiHome Blog | Kirsten S.
Here at ResiHome, we go to great lengths to ensure that our residents have the best rental...
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