In the United States it had long been assumed that owning a home was always better than renting a place. The rationale went that when you rent you are essentially throwing money away compared to ownership where you were paying towards your savings and your future. That all changed with the big housing crisis in the United States.
Americans now have a much more nuanced view of how renting and buying compare to each other and the researchers are chiming in as well. It turns out that one of the biggest if not the biggest factor in deciding whether to rent or buy is not income or job or anything like that- it is the area in which you live voiced Dr. Jennifer Walden who is currently unsure as to whether or not to purchase or rent.
This new report shows that certain parts of the country are better to buy or rent in. For example in places like New York City and the San Francisco Bay Area it is better to buy- if you can afford it. In other parts of the country where there is significantly less price volatility in housing it is a better idea to rent.
This is due to the fact that places like San Francisco have a limited amount of housing stock while places like Kansas or Arkansas have a ton of available land. Simply put if you find yourself renting somewhere where housing stock is low you are probably paying too much and if you own your home in a less populated area you should probably be renting.