3 Things That Are Not Going To Happen in Today's Housing MarketThere’s a lot of uncertainty right now and that’s leading to some dramatic headlines. And if you’re thinking about
Is It Really Better To Rent Than To Own a Home Right Now?
Dated: March 6 2023
Views: 144
Is It Really Better To Rent Than To Own a Home Right Now?
You may have seen reports in the news recently saying it’s better to rent right now than it is to own your home. But before you let that impact your decisions, you should understand what these claims are based on.
A lot of the time, these reports are assuming things that aren’t realistic for the average household. For example, the methodology behind one of those reports says that renting is the smarter financial option because of the opportunity to invest money elsewhere. It assumes renters take the money they’d spend on costs tied to buying a home and put it in an investment portfolio.
But here’s the thing – most people who rent aren’t making those investments. Ken Johnson, Co-Author of the BH&J National Price-to-Rent Index, explains:
“One of the difficulties with the rent and reinvest model is many people . . . simply rent and spend the difference. . . . That’s wealth destroying.”
The reason homeownership is one of the best investments you can make is the wealth it helps you build. That’s why there’s a significant difference between the net worth of the average homeowner and the average renter (see graph below):
So, before you renew your rental agreement, think about the opportunity to build wealth that homeownership provides.
Bottom Line
If you’re unsure whether to continue renting or to buy a home, let’s connect to help you make the best decision.
Kinney Yong
Hi there! Are you thinking about buying or selling a home in Southern California? I'm a licensed real estate sales associate and Notary Public. With many years of experience under my belt, I've he....
Latest Blog Posts
Top 3 Reasons To Buy a Home Before SpringIf you’re planning to buy a home this year, you may be focused on the spring market. And hoping that when spring does hit, you’ll see:Mortgage
The Housing Market Is Turning a Corner Going into 2026After several years of high mortgage rates and hesitation from buyers, momentum is quietly building beneath the surface of the housing market.
Why Buyers and Sellers Face Very Different Conditions TodayThere’s a new divide in housing right now. In some states, buyers are gaining ground. In others, sellers still have the upper hand.
Based on information from California Regional Multiple Listing Service, Inc. as of September 23, 2026 10:07 PM UTC This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
