According to new research from lender Freddie Mac, every generation—from millennials to Gen Xers to Baby Boomers—are continuing to rent because they think it’s saving them money. According to the report, 76% of Millennials, 75% of Gen Xers, and 81% of Baby Boomers said renting was the more affordable option.
But with rents rising across the country, that’s just no longer the case. According to the most recent Market Outlook Report from Realtor.com, rents rose year over year in nearly ¾ (73%) of counties across the United States. And according to Trulia, it is now more affordable to own a home than to rent in a whopping 98% of the largest metro markets in the US.
The Takeaway
The misconception that renting is more affordable than home ownership is not only costing renters of every generation money, it’s also costing them the ability to own their own home. If you’ve been renting because you believe it’s saving you money—no matter how old you are—it’s time to look at the facts, reevaluate your situation, and consider transitioning to home ownership.