Do You Know the Cost of Not Owning Your Home?

Home / Blog / Do You Know the Cost of Not Owning Your Home?

Do You Know the Cost of Not Owning Your Home?

Owning a home has great financial benefits, yet many continue renting. Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.

Zillow recently reported that:

“With Rents continuing to climb and interest rates staying low, many renters find themselves gazing over the homeownership fence and wondering if the grass really is greener. Leaving aside, for the moment, the difficulties of saving for a down payment, let’s focus on the monthly expenses of owning a home: it turns out that renters currently paying the median rent in many markets could afford to buy a higher-quality property than the typical (read: median-valued) home without increasing their monthly expenses.”

What proof exists that owning is financially better than renting?

1. The latest Rent Vs. Buy Report from Trulia pointed out the top 5 financial benefits of homeownership:

  • Mortgage payments can be fixed while rents go up.
  • Equity in your home can be a financial resource later.
  • You can build wealth without paying capital gain.
  • A mortgage can act as a forced savings account
  • Overall, homeowners can enjoy greater wealth growth than renters.

2. Studies have shown that a homeowner’s net worth is 45x greater than that of a renter.

3. Just a few months ago, we explained that a family buying an average priced home at the beginning of 2017 could build more than $42,000 in family wealth over the next five years.

4. Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent payment –along with a profit margin!!

Bottom Line

Owning a home has always been, and will always be, better from a financial standpoint than renting.


2c503839 1c7a 4940 b375 545bc660da56 58d35a82 2ac5 4202 8688 7febe667e38e 20326867 b3ac 4831 af9c a0ebd63b5a18 0e603b64 f9df 45dd a14e db30732908fa ce6a074e d011 4f53 99e3 a2a056879ee7 333721bd f5ac 4223 bcb2 0166f3767eec f3b0daf8 d72c 4e55 8ecd 2e87f6f34f85 20bf25e7 9d4e 4ec0 ba6e 7ce7df3c68a8 d30bca49 67cc 4df0 95af a9870932d23e a54fe697 a746 4c42 bc5b 490723beb730 030bc02d e4c7 4fa3 8815 e992535e75f9 4aab7d96 816e 48a2 ba6b dd55f7491f62 dc09a1c7 9d84 4fba b4ae 82b96255ce1b 26d56b88 ea3e 489d 97a0 54317f9e012b 2de8caa4 a325 45dd b773 6e6d31bb5acc 7660d63d 467f 4f4d b361 db391c9ebc50 004c29a2 8191 43fc bb45 356246d294aa 25c8f9dd 9d80 492a 8b84 857da8fd5506 e38d0391 3cd2 4b95 8854 52cd47f1f313 625a7977 7163 40f7 8f47 934fb26355e8 6b6e9f42 0122 42ec a7f6 984544567fce 0c6f2c64 cc62 4bdd 9fd4 12e980156e25 a1f5ed8c 6eb9 4290 8ac1 dac010b68483