Own or Rent? It Depends.

The discussion around renting or purchasing a home has been a topic of discussion for quite some time given the economic climate.  In recent years, exploding home prices and mortgage rates have eclipsed increasing rents.  Yet, the decision ultimately comes down to the tangibles (affordability vs. wealth) and intangibles (stability vs. flexibility).

To many, affordability of our Southern California city makes renting the right "short term" solution.  The fact is, buying a home is not for everyone.  Our advice is to purchase a home when you are ready and able to do it.  In the meantime, there are compelling data points that may lead you in a certain direction. 

The Reality of Renting

Renting in Long Beach and other Southern California cities may seem like a safer bet today - with lower monthly payments, less responsibility and no strings attached.

But long-term? It can sting.

In Long Beach, while home prices have gone up, so has the cost of renting.  Since 2020, the cost of rents in our city and the nation have risen significantly - only recently showing signs of stabilizing.  This may be due to increasing inventory (homes for sale) and downward trend in interest rates.  However, a tighter than normal rental market still exists throughout our city and the nation

Today's Homeowner's Net Worth is 40x Greater Than That of a Renter

As home values in Southern California (specifically Long Beach) rise, so does your equity as a homeowner.  So, with every mortgage payment, equity grows.  Over time, that becomes part of your net worth and wealth.

What Really Matters

Unlike renting where your money is gone once it's paid, owning a home means the money you payas a mortgage helps build equity - like a savings account you live in. Of course, buying comes with responsibility but it also provides an unequaled upside - stability and wealth.

Final Thoughts

Renting feels more "do-able" today.  But over time, it could cost you more - without helping you build anything for your future. 

If homeownership feels out of reach today, you're not alone.  And the first step toward going from renting to homeownership is to set a plan.  If you are looking to purchase your first or next home, let's connect, set your specific goals and explore your options - so you're ready when the time is right.