Rising rates and home prices have helped make renting a more affordable option than buying a home. The cost of homeownership increased 14 percent annually, while the cost of renting crew by 4 percent this year.
Buying and owning a home is the more affordable option in only 35 percent of U.S. counties year, down nearly 10 percent from last year's numbers. In addition to saving money, investing in rental property is becoming more profitable. Florida Atlantic University and Florida International University faculty research finds, "Renting and reinvesting the savings from renting, on average, will outperform owning and building home equity, in terms of wealth creation," for the first time in eight years, CNBC reports.
It is easily the question most asked by anyone moving into their first home or downsizing into retirement. Should I buy or should I rent? For nearly a decade the answer has been buy. The crash in home prices, combined with record-low mortgage rates made buying and owning a home both cheaper than renting one and a better investment. Now, the tide has turned.
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