To Buy or to Rent?
So much of our mainstream society in the US says that homeownership is a marker of adulthood, a key to happiness, and part of the American dream. But I know that it’s not for everyone and that it’s possible to be a renter and be a successful and happy adult living your dream. Renting offers flexibility, a predictable monthly payment, and someone else to handle repairs, maintenance, and yard work. Owning, however, offers a sense of stability and security, tax credits, and wealth building through equity, as well as helps to stave off inflation.
While there are many reasons people may not want to buy, owning your home can have a big positive impact on your net worth, especially in the long-term. Every three years, the Survey of Consumer Finances measures the median household net worth for both homeowners and renters. In 2019, which was the last year the survey was conducted, they found the median net worth of homeowners in the US was $254,900 while renters had a median net worth of $6,270. The difference is staggering; it’s about $240,000 or 40 times greater for a homeowner.
And while I don’t believe that homeownership is a marker of adulthood or a measure of one’s success, I do believe it can be a pathway to having financial security and building wealth, which can break cycles of poverty and oppression.
If you’re curious to learn more about how to purchase a home or are looking for additional resources on building wealth through real estate, reach out. I’d love to chat!