Buying A Home Is Better Way To Produce Wealth Than Renting

Dated: 10/05/2015

Views: 1090

Buying A Home Is Better Way to Produce Wealth Than Renting

by  


Buying A Home Is Better Way to Produce Wealth Than Renting | Keeping Current Matters

According to the latest Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Indexhomeownership is a better way to produce greater wealth, on average, than renting.

The BH&J Index is a quarterly report that attempts to answer the question:

Is it better to rent or buy a home in today’s housing market?

The index examines that entire US housing market and then isolates 23 major markets for comparison. The researchers at use a “’horse race’ comparison between an individual that is buying a home and an individual that rents a similar quality home and reinvests all monies otherwise invested in homeownership.”

Ken Johnson, Real Estate Economist & Professor at Florida Atlantic University, and one of the index’s authors states:

"The U.S. as a whole is still in clear buy territory. The cities of Cincinnati, Chicago, Cleveland, and New York City are deep into buy territory."

Miami and Portland had been inching closer toward renting being the better option but have "pulled back from the edge." Johnson goes on to say, “that's a good sign for home pricing as it suggests prices are going to level off in these metro areas."

Bottom Line

Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, so lock in your housing cost with a mortgage payment now.

Want to Advertise on this Site?

Latest Blog Posts

DriveThru Closings The Sale Must Go On

Real estate professionals find creative ways to keep closings on track as transactions are disrupted amid the coronavirus outbreak.Picture a drive-thru window at a fast food restaurant: That’s

Read More

Looking To The Future What The Experts Are Saying

As our lives, our businesses, and the world we live in change day by day, we’re all left wondering how long this will last. How long will we feel the effects of the coronavirus? How deep will the

Read More

ShelterinPlace Guidance During COVID19

Shelter-in-Place Order: What Does It Mean? In an effort to prevent the continued spread of, and exposure to, COVID-19, a growing number of states, cities and counties have issued “shelter-in

Read More