This phenomenon may exacerbate inequality in our society, as those wealthy enough to invest in real estate benefit from lower interest rates, whereas minorities and younger Americans, hit by rising rents and student debt, risk being locked out of homeownership.”

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What proof exists that owning is financially better than renting?

1.  A study published by the Joint Center of Housing Studies at Harvard University shows the financial benefits of
     homeownership. The study mentions five major financial benefits:

• Housing is typically the one leveraged investment available

• You're paying for housing whether you own or rent

• Owning is usually a form of “forced savings”

• There are substantial tax benefits to owning

• Owning is a hedge against inflation

2.  Studies have shown that homeowners have a net worth that is 45X greater than that of a renter.

3.  A family buying an average priced home this past January can build more than $46,000 in family wealth over the next five years. 

4.  Some argue that renting eliminates the cost of taxes and home repairs. Every prospective renter must realize that all the expenses
     the landlord incurs are baked into the rent payment already – along with a profit margin.
 

Bottom Line

Owning a home has always been and will always be better from a medium to long-term financial standpoint than renting.

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