The Perks of Buying Over Renting a Home in Metro Detroit.

We’ll review the hidden perks of buying over renting a home in Metro Detroit. As you work through the blog post, I have helpful links to help you with your home-buying journey. 

The Perks of Buying Over Renting Today

Are you considering buying a home? While today’s mortgage rates might raise eyebrows, there are compelling reasons why securing your own home is a wise decision. You can see by the report below regarding the February Rental Report that there wasn’t a huge difference in your monthly payment between buying and renting. Maybe you should pay yourself every month versus your landlord? 

20240417-February-2024-Rental-Report | Team Tag It Sold for Metro Detroit

1. Home Values Typically Go Up Over Time

Over the past year or so, there’s been some confusion about which way home prices are headed. Please make no mistake; nationally, they’re still going up. In fact, over the long term, home prices almost always go up (see graph below): 

Using data from the Federal Reserve (the Fed), you can see the overall trend is home prices have climbed steadily for the past 60 years. There was an exception during the 2008 housing crash when prices didn’t follow the normal pattern, but generally, home values kept rising.

This is a big reason why buying a home can be better than renting. As prices go up and you pay down your mortgage, you build equity. Over time, this growing equity can really increase your net worth. The Urban Institute says:

“Homeownership is critical for wealth building and financial stability. Maybe now is the right time to Buy a House?”

2. Rent Keeps Rising in the Long Run

Here’s another reason you may want to consider buying a home instead of renting – rent keeps increasing over the years. Sure, it might be cheaper to rent right now in some areas, but every time you renew your lease or sign a new one, you’re likely to feel the squeeze of your rent getting higher. According to data from iProperty Management, rent has been going up pretty consistently for the last 60 years, too (see graph below):

So, how do you escape the cycle of rising rents? Buying a home with a fixed-rate mortgage helps you stabilize your housing costs and say goodbye to those annoying rent increases. That kind of stability is a big deal.

Your housing payments are like an investment, and you’ve a decision to make. Do you want to invest in yourself or keep paying your landlord?

When you own your home, you’re investing in your own future. Even when renting is cheaper, the money you pay every month is gone for good.

As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR), says:

“If a homebuyer is financially stable, able to manage monthly mortgage costs and can handle the associated household maintenance expenses, then it makes sense to purchase a home.”

Bottom Line

If you’re tired of your rent going up and want to explore the many benefits of homeownership in Metro Detroit, let’s talk to explore your options.

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Pam Sawyyer @ Metro Detroit Home Experts

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