(Updated April 2013)
Is it better to buy or rent? Whether renting is better than buying depends on many factors. The information listed here will assist you in helping answer this question. Included are statistics and studies on home owners and renters as well as financing options and tips. (M. Glick, Senior Information Specialist)
Buy vs. Rent Comparison
The chart below shows a cost comparison for a renter and a homeowner over a seven year period.
The renter starts out paying $800 per month with annual increases of 5% The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000
After 6 years, the homeowner's payment is lower than the renter's monthly payment
With the tax savings of homeownership, the homeowner's payment is less than the rental payment after 3 years
Source: Ginnie Mae, (ginniemae.gov). Click on image to enlarge.
Source: Homes: Rent or Buy, (YouTube, Feb. 12, 2009).
Statistics & Studies on the Buy vs. Rent Decision
Poll: Number of Renters Who Want to Own Skyrockets, (REALTOR® Magazine Online, Jan. 3, 2013).
American Renters Getting Squeezed, (REALTOR® Magazine Online, July 5, 2012).
12 Markets Where It’s Better to Rent., (The Fiscal Times, Jan. 4, 2012).
Rents Keep Rising as Demand Soars, (REALTOR® Magazine Online, Feb. 28, 2012).
"Are Retirees Better Off Renting than Owning a Home?",(Outofyourrut.com, Apr. 22, 2011).
Why renters should consider buying a home, (Tampa Tribune, May 29, 2012).
Q1 2010: Homeownership Rates Lowest Since Q1 2000, (Calculatedriskblog.com, Apr. 26, 2010).
Is it Better to Buy or Rent?, (NYTimes.com, Apr. 21, 2010).
1st Year Analyst - Buy vs Rent Decision?, (wallstreetoasis.com, Jan. 27, 2010).
Buying a Home in a Down Market, (About.com, 2010).
How Much of a Mortgage Can I Afford?, (REALTOR® Magazine Online).
Rent vs Buy calculator, (Move.com).
Consumer Information, Tips & Resources
Rents keep Rising as Demand Soars, (RealtorMag.com, Feb 28, 2012).
Renting out your home?, (HouseLogic.com, May 3, 2010).
How to Borrow Funds for a Down Payment for a Home, (articlebase.com, Apr. 24, 2010).
Mortgage Interest Deduction Vital to Housing Market, (HouseLogic.com, Jan. 11, 2010).
What Are the Risks?, (Freddie Mac, 2010).
Rental Help in your State, (Hud.gov).
Down payment assistance resource directory, (Housing Assistance Network).
Common questions from first-time homebuyers, (HUD.gov).
Information for REALTORS®
Rent vs. Buy Decision More Than A Question of Affordability, (Realty Times, June 2012).
Resources for real estate professionals, (Freddie Mac).
Turning Renters into Buyers, (Real Estate Marketing Blogger, June 2007).
eBooks & Other Resources
The following ebooks and digital audiobooks are available to NAR members:
Rent vs Own (Kindle, Adobe eReader)
Buying a Home When You're Single (Adobe eReader)
Buying Real Estate Without Cash or Credit (Kindle, Adobe eReader)
Home Buying for Dummies® (Adobe eReader)
Books, Videos, Research Reports & More
The resources below are available for loan through Information Central. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Information Central at 800.874.6500 for assistance.
8 Steps to buying a home: a buyer's guide to finding a home in today's market, (Minneapolis: David Knox, 2003). DVD005
The Everything homebuying book, (Avon, MA: Adams Media Corp., 2003). HD 1341 W38e
The Absolute beginner's guide to buying a house, (Roseville, CA: Primus Publishing, 2002). HD 1341 Or2
House hunting: the take-along workbook for home buyers, (Vancouver, BC: Raincoast Books, 2002). HD 1341 H99h
Home buying for dummies, (New York, NY, Wiley Publishing, 2001). HD 1341 T98
The economic benefits and costs of homeownership, (Washington, DC: Research Institute for Housing America, 2001). HD 7293 R23e
Field Guides & More
These field fuides and other resources in the Virtual Library may also be of interest:
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