If you have been hovering on the thought of buying your own home, then chances are you're also wondering whether it's really a wise choice, and more importantly, if it's really better than just renting for the rest of your life. It seems this is the quintessential question in 1 out of 4 individuals today. Homebuying, it seems, is no longer an important life goal for them.
Locally, this is evidenced by the fact that even though rental rates have skyrocketed, Boston's rental housing market is still in dire need of more units to replenish its dwindling inventory. In fact, Boston experienced a 23% increase in rental rates in the past 18 months; only North Dakota (+33%) and the city of New York (+25%) saw bigger increases. In addition, a little less than half of the respondents surveyed are expecting to experience even more increases in the coming years, prompting the question of why, inspite of increases, they are willing to continue with their preference of renting than buying?
A possible explanation, according to the National Housing Institute, could be of fear. Specifically, the threat of the recession coming back with a vengeance. Most of the individuals who are currently as well as soon-to-be in the position to buy property are in their middle twenties to early thirties, the population who experienced the recession the worst, given they were just starting out fresh from school when it hit.
"An experience like that could make someone really think twice about the stability of their future investments, and therefore reassess the goals in their lives", said Alan Morrisy, Associate Editor at NHI.
Regardless of whether you're one of the people who think renting for life is the solution, or buying a house is a sound investment, it is always good to be vigilant and aware where your money is going to and what it's going to be like in the future. Whether that future involves you selling purchased property, or cashing in on your stashed pile of savings, in the end it's all up to you.