Commenter ‘D Man’ says that you can debate the Rent vs. Own until you’re blue in the face.  We should examine the differences from time to time to note any changes – here’s a link to our discussion two years ago.

Livinincali already left this comment in the previous post:

Of course there’s a new generation that’s been burned by the stock market, burned by the housing market, burned by college debt that are the next wave of producers.  Those producers are the ones you’re going to need to sell too and if they don’t value assets the same way you do it might be hard to get top dollar.

All previous generations believed in the American Dream of homeownership.

Will the trend be broken?


Today’s buyers have both the cash and confidence to feel comfortable buying – they must, because there are plenty of reason not to buy.  But is renting one of them?  How attractive is renting to those who are flush with dough?

Reasons Not to Rent

  1. Potentially-rising rents vs. locking into a low 30-year fixed rate.
  2. You wonder if the landlord is making his mortgage payment.
  3. You fear that the landlord might want to move back in, or otherwise make you move.
  4. You hope that he fixes stuff properly, and promptly.
  5. Fear of renting forever (not applicable to all).

Renting does offer maximum flexibility, freedom from home repairs, and tolerance of imperfections – you might be able to live with some stuff knowing that you will only be there temporarily.

Reasons Not to Buy

  1. Inhibits flexibility to move again.
  2. Difficult to secure the right house at right price.
  3. Repairs can be costly and very distracting.
  4. Ties up a big chunk of cash.

Homeownership does provide a sense of accomplishment/putting down roots, the ability to determine your own destiny, a decent tax write-off for now, and provide a work project for those so inclined.

But a factor that should get more attention is the haves vs. have-nots.  The affluent are buying at these prices, and keeping homeownership out of reach for the common man.  If the affluent are willing and able to hold properties in perpetuity, then there will be less reliance on future generations to pony up.

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