Why Homeownership is Less Expensive Than Renting

You may have been thinking about holding off from purchasing a home this year, due to the the rising home prices and increasing mortgage rates.

According to the latest report from ATTOM Data, owning a home is more affordable than renting in the majority of the country. The 2022 Rental Affordability Report says:

“. . . Owning a median-priced home is more affordable than the average renting a three-bedroom property in 666, or 58 percent, of the 1,154 U.S. counties analyzed for the report. That means major home ownership expenses consume a smaller portion of average local wages than renting.”

Rental prices skyrocketed over the last year as the country began to recover from the COVID-19 pandemic and from the two–month recession in 2020 that came after nationwide lockdowns. For example, the rental cost for an average one-bedroom apartment has increased by more than 20% year over year.

While it’s true the prices of homes and mortgage rates are continuing to rise, so are the cost of monthly rents. As a prospective buyer, rising rates and prices shouldn’t be enough to keep you on the sideline, though. The big difference is, when you rent, that rising cost benefits your landlord’s investment strategy, but it doesn’t deliver any sort of return for you.

If you’re considering your options between renting and buying, it’s important to take a look at the entire picture. While buying a home can feel like an excruciating process, having a trusted real estate agent on your side to help advise you is key. Work with an agent to explore your options so you can learn more about the benefits of homeownership today.