The age old question...should I rent or buy? A recent LendingTree study found that in nearly 50 metro areas in the US that renting is less expensive than buying when you compare the median rent to the mortgaged housing costs listed by the Census Bureau.
Owning a home is a long-term investment that can increase your net worth and bring peace of mind that you have secure housing in an otherwise competitive housing market. However, the prospect of buying a home isn't within reach for many Americans and the decision largely depends on where you live and where you work. Alternatives such as investing in the stock market while you remain a renter could be a better option depending on your time horizon.
The trope that Millennials can't afford a home simply because they spend too much money on DoorDash, iced coffee and avocado toast is misplaced and shows how broadly housing is completely misunderstood between different generations. We forget that most of our perspective on economics, investing and risk is shaped by the era in which we first became an adult. If you came of age in the inflation busting 70's you have a wildly different opinion of monetary policy than someone who began their career in the midst of the Great Recession. I digress.
Back to the rent v own question...a holistic financial plan will integrate all of your goals - long and short - into a comprehensive strategy will bring clarity to the housing question as it relates to other factors such as retirement savings and risk tolerance. Reach out to me directly and we can discuss how to approach your plan.