Is It a better Time to Rent Than to Own a Home Right Now?

Dated: March 10 2023

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Is It Really Better To Rent Than To Own a Home Right Now?

Is It Really Better To Rent Than To Own a Home Right Now? | MyKCM

You may have seen reports in the news recently saying it’s better to rent right now than it is to own your  home in Omaha, Council Bluffs and the surrounding area. Buying vs renting is a big decision and can affect your net worth for years to come if a wrong decision is made. But before you let that impact your decision on renting vs buying, 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 in Omaha or Council Bluffs, 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 in Omaha, Council Bluffs and the metro area, let’s connect to help you make the best decision for your situation. Reach out to Chris or Cory at the Homes by Chris Harter Real Estate Team. You can call or text 402-378-9462 or go to www.homesbychrisharter.com.

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Chris Harter

As a Realtor my first priority is you. Listening to your wants and needs to achieve the best outcome whether selling your home or finding your next dream home. I truly care and will work to make your ....

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