Inside: Learn four benefits of renting over buying and see ways that not owning your home isn’t all bad.
For many people, deciding to buy a home is the biggest financial decision they will ever make.
It’s often framed as a natural progression in life: Rent for a few years, then buy a home to settle down and build equity.
However, in recent years, the traditional narrative around homeownership has shifted. More and more people are beginning to question whether buying a home is a good option.
For many, the prices have made home ownership out of reach. For others, there are serious questions over whether or not it makes financial sense.
We have opted to rent a home and, over the years, have discovered the hidden benefits of renting over buying.
In this post, I’ll share the reasons behind our decision to rent instead of buy and why, for us, renting makes more sense right now.
4 Benefits of Renting Over Buying a Home
Here are four benefits of renting over buying a home that we’ve experienced.
1. The Financial Burden of Homeownership
Let’s face it: buying a home is expensive. Beyond the initial purchase price, which has gone up significantly in recent years, numerous hidden costs also come with homeownership.
Property taxes, homeowners insurance, maintenance, repairs, utilities—these all add up quickly. The thought of paying off a mortgage for the next 30 years can be overwhelming, especially when you consider the uncertainty of the housing market.
When we started thinking about buying a home, the idea of committing such a large portion of our income to a property didn’t sit well with us. Sure, owning a home can be a great investment, and it’s often seen as a way to build wealth over time. But it’s also a financial risk.
We took a look at our budget and the amount we were willing to pay for housing each month. What we discovered is that in the area we live in, we would pay almost twice as much money per month to purchase versus rent a home.
And with that comes all of the additional financial responsibilities. For us, the current numbers just don’t make sense. There aren’t enough benefits to outweigh the enormous costs.
Housing Market Fluctuations
Housing markets fluctuate, and the house you buy today might not hold its value in the future. For us, tying up so much money in a single asset, especially in an unpredictable market, didn’t seem like the best way to create financial stability.
Instead, renting allows us to live in a nice home without the large upfront costs and long-term financial commitment. Our rent is a predictable monthly expense, and we don’t have to worry about sudden repair costs, property taxes, or the volatility of the housing market.
Renting offers us the freedom to allocate our money toward other financial goals, like building savings, investing, and traveling. We don’t have to stretch ourselves thin by paying for a house that costs more than we can comfortably afford.
2. Flexibility and Freedom
One of the most appealing aspects of renting is the flexibility it provides. Life is unpredictable, and circumstances can change quickly.
Renting gives us the freedom to easily move if needed. Family needs, work opportunities, and our priorities change over time. We’re able to relocate as desired without having to worry about selling a home.
Life is constantly shifting, and it can be a challenge to predict where we’ll be in a few years. However, purchasing a home would lock us into one place for a long time. The typical advice with buying a home is to plan to stay there for at least 5 years due to potential market fluctuations.
When you own a home, there isn’t much you can do if you end up with a neighbor who is very bothersome. Or what if you discover the neighborhood isn’t what you expected? When you rent, it is easy enough to pack up and move to a different living situation. When you own it’s less simple.
Renting saves us money each month and means we don’t have to worry about the long-term implications of owning a home. We don’t have to think about selling at a loss if the timing doesn’t align well. We can move when it makes sense for us.
3. Time and Energy for Our Priorities
In addition to money, maintaining a home takes a lot of time and energy. From cleaning the gutters to fixing a leaky faucet, homeownership tasks can take up a lot of time.
We wanted to avoid this burden and keep our time and energy focused on our priorities, like time with our family.
When you own a home, you become responsible for all aspects of its maintenance and upkeep. Even if you hire a professional for repairs, you’re still responsible for the costs and scheduling.
With renting, these tasks are handled by the landlord or property management company. If something breaks or needs fixing, we contact them, and it’s taken care of.
This leaves us with more time and mental energy to enjoy life without the stress of home repairs.
This is particularly important for us because we prioritize simplicity in our daily lives. We want to focus on the experiences that matter most, not on the never-ending list of things that need to be repaired or maintained in a home.
4. Avoiding the Homeownership Trap
There’s a societal pressure that comes with homeownership. Owning a home is often seen as a sign of success, stability, and maturity.
But in reality, it’s not always the best choice for everyone. The idea that “renting is throwing money away” is a common misconception. In truth, renting provides a level of financial freedom that homeownership doesn’t.
You get to determine your own version of success and how you measure it. It doesn’t need (and shouldn’t be) tied to what you own.
Homeownership can become a trap. When you buy a home, you’re tied to a specific location, a specific set of responsibilities, and a financial burden.
Renting allows us to avoid that trap and gives us the opportunity to make choices based on what feels right for us, not based on external expectations.
This isn’t to say we never want to own a home, but we’ve become very realistic with the numbers rather than making a decision based on emotion. We’ve learned to love the home we have while we wait to see how the market changes over time.
The Drawbacks of Renting Instead of Buying
After listing the benefits of renting over buying, it’s important to also talk about the potential drawbacks as well.
There are good and bad owners and property managers out there. We’re grateful to have a very responsive team that handles issues as they arise. I know that isn’t the case everywhere, though, and it can be a source of frustration.
And while your rent is typically fixed for a year if you’re on a typical lease, many landlords do raise the rent to some degree each year.
Additionally, not owning the property means there are limits on what you can do to the home in terms of decorating or upgrading things.
And while you don’t have a financial risk if the market takes a nosedive, you also don’t get any appreciation for all of the years when values do increase. You also don’t have a home to pass down to family members if that’s important to you.
Final Thoughts on Renting vs Buying: Renting Provides a Simpler Life
Ultimately, right now, renting offers us a simpler life. It allows us to focus on what truly matters without the burden of homeownership.
Renting gives us the flexibility to live where we want without the financial stress and long-term commitment of buying a house. It also gives us more time, energy, and resources to devote to the things that we care most about.
While owning a home has been synonymous with the American dream, choosing to rent may seem unconventional. But for us, for now, it’s the right choice.
Renting has freed us from the complexities and pressures of homeownership, allowing us to lead a simpler, more intentional life. And that, to us, is priceless.
Have you noticed any additional benefits of renting over buying? Share them in the comments section below.
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