When Renting Makes More Sense Than Buying a House

Buying a house is a great goal, but it’s not for everyone. Find out why renting might be a better option if you’re not ready to buy.

Housing Market a Hot Topic

Image Credit: Shutterstock / MDV Edwards

It may seem like all anyone can talk about is the housing market. There are pain points there when it comes to inventory, interest rates, and rising home costs. Maybe you’ve decided you’re not ready to commit to purchasing a home.

A Quarter of Americans Love Renting

Image Credit: Shutterstock / ChameleonsEye

If that sounds like you, you’re not alone. 26% of Americans prefer to rent their homes instead of buying them. 

Benefits of Renting

Image Credit: Shutterstock / Mila Supinskaya Glashchenko

Buying isn’t for everyone. There are many benefits to renting a home that you don’t get when you own. Sometimes, renting is the more flexible and even cheaper option.

Housing Market Struggles

Image Credit: Shutterstock / SaiArLawKa2

In a struggling market, many Americans have found that renting better fits their lifestyle. It offers them the ability to move when they want and better anticipate their financial obligations.

Reasons to Rent

Image Credit: Shutterstock / Andrey_Popov

If you’re weighing your options, here’s why renting could be the right choice for you.

#1. Short-Term Savings

Image Credit: Shutterstock / Good Mood

Renting can allow you to save money in the short term, which many people need right now in a difficult economy.

While buying a home may be a long-term investment, renting is a good option for people who aren’t ready to give up their savings.

#2. Avoiding Repairs and Maintenance Costs

Image Credit: Shutterstock / Bilanol

When you own your home, you’re responsible for handling everything that breaks or needs replacing. As a renter, your landlord gets that honor.

Repairs and maintenance can be very expensive, and things break – a lot. You might have to wait longer than you would if you did it yourself, but there are obvious benefits to having someone else take care of those tedious tasks for you.

#3. No Worries About High-Interest Rates

Image Credit: Shutterstock / LifetimeStock

Mortgage interest rates are still high, and who wants to deal with that? If you rent, you don’t pay interest on your rent payments – everything goes toward what’s owed in your lease.

Depending on where you live, your rent payment may be lower than a mortgage payment because there is no extra interest.

#4. Few Great Homes On the Market

Image Credit: Shutterstock /petrmalinak

Right now, the housing market is struggling because of low inventory. There just aren’t enough homes on the market to keep up with the demand of buyers.

Renting can be a great way to wait out a slow market while you keep an eye out for your perfect home. There’s no reason to settle for buying a home that you don’t really love when you could rent one for a while instead. 

#5. Flexibility to Move When You Want

Image Credit: Shutterstock / New Africa

Buying your home means you’re locked into where you live until you sell the house. That process can be daunting and expensive, even if you have equity.

Renters have the benefit of being able to move wherever they want at the end of their lease without worrying about how to offload an entire house.

#6. Saturated Buying Market

Image Credit: Shutterstock / PaeGAG

Since inventory is low, there are more would-be homebuyers than there are homes to buy. That means the market is extremely competitive, and it’s difficult to get the home you want in some areas without paying more than it’s worth. 

#7. Upfront Costs are Lower

Image Credit: Shutterstock / Inna Dodor

To rent a home or apartment, you typically just need a security deposit and first and last months’ rent.

For buying a home, you’ll invest a lot more upfront, including a down payment, closing costs, inspection fees, and more. If you’d prefer to keep that money in savings for now, renting might be a better option.

#8. Community Shopping

Image Credit: Shutterstock / LightField Studios

As a renter, you can hop around from community to community to get a feel for the neighborhood you want to call your forever home.

There’s no way to truly know a community until you’ve lived inside it, so renting is a great way to test the waters.

#9. Less of a Financial Risk

Image Credit: Shutterstock / Dilok Klaisataporn

Owning your own home comes with risk – the market could crash, disaster could strike, or you could just decide you don’t love your house anymore.

Those risks don’t affect renters since you’re borrowing someone else’s home for a while instead of investing in your own.

#10. No Concerns About Home Losing Value

Image Credit: Shutterstock / Andrii Yalanskyi

There have been concerns about whether the housing market is going to crash again, which has homeowners nervous.

If you’re renting, you don’t have to be anxious about home values, since your rent is based on the market value and not the price of the home. 

#11. Safety and Security

Image Credit: Shutterstock / nimito

Some people find comfort in living in an apartment complex with security systems and sometimes even guards in the building. 

#12. Less Responsibility

Image Credit: Shutterstock / Prostock-studio

Overall, renting comes with less responsibility than owning your own home.

While you should still care for your rental as if it were your own, you don’t have to be responsible for updates and maintenance like you would if you purchased the place.

Does That Mean I Should Never Buy a Home?

Image Credit: Shutterstock / Studio Romantic

We aren’t suggesting you should never look into purchasing a home. It’s important to be ready for a move like that, and renting is a great way to buy some time before making that commitment.

The Bottom Line

Family adding money to piggy bank
Image Credit: Shutterstock / Evgeny Atamanenko

At the end of the day, the choice is yours. If you’re looking for flexibility, less responsibility, and time to decide where you want to plant your roots, renting may just be the option for you. 

23 Steep Taxes Adding to California Residents’ Burden

Image Credit: Shutterstock / Alex Millauer

California: a place of sunshine, innovation, and, unfortunately, some of the nation’s highest taxes. From LA’s beaches to Silicon Valley’s tech hubs, residents grapple with a maze of state taxes. Here’s a glance at 23 taxes that might surprise both Californians and outsiders. 23 Steep Taxes Adding to California Residents’ Burden

Cash in on Nostalgia: 21 Toys Now Worth a Fortune

Image Credit: Shutterstock / Kostikova Natalia

Time to dust off the boxes and find that once-cherished toy from your childhood. For collectors and enthusiasts, these items have become valued objects, and they can be worth big bucks – are there any of these in your attic? Cash in on Nostalgia: 21 Toys Now Worth a Fortune

Millennials Don’t Buy These 19 Products Anymore

Image Credit: Shutterstock / mariakray

Millennials are changing consumer habits, quietly replacing once-staple products and traditions. Often criticized for their disruptive preferences, this generation is reshaping the marketplace with digital expertise, ethical buying, and a taste for the unconventional. Millennials Don’t Buy These 19 Products Anymore

The post When Renting Makes More Sense Than Buying a House first appeared on Thrift My Life.

Featured Image Credit: Shutterstock / fizkes.

The content of this article is for informational purposes only and does not constitute or replace professional financial advice.