Owning vs renting
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This page reviews the arguments for owning vs. renting your home.
Many people get a psychological benefit from owning a home. They like feeling that a piece of property is theirs. Of course, that ownership is normally dependent on making monthly payments to the bank. And even after the mortgage is paid off, you still need to pay insurance and taxes.
The biggest advantage of renting is the flexibility to relocate relatively easily. In the last century, many people worked for employer their entire lives. But today, most workers are likely to work for a number of different employers, in multiple different cities. Even when switching jobs within the same metro area, a previously convenient house may now entail a grueling commute.
1 in 6 now owe more on their mortgage then their property is worth. Many more are not willing to sell their homes because they know the price has dropped below what they paid. Many of these stay in a home that is poorly located, or too big or too small for what they can now afford.
Houses vs. Apartments
There is a common misconception that only apartments are available for rent. Although most rentals are apartments, homes in every category from 400 sq ft shacks to 10,000 sq ft mansions are available for rent.
- "A rising tide of ‘underwater’ homeowners", MSNBC, 2008-10-08