Is it better to buy or rent a home? Owning your own house has long been considered part of the American dream, and with the continued rise in California’s rental market, this might be the perfect time to invest in your future, and become a homeowner.
The Rising Cost of Rent in California
Unfortunately, California law offers few protections to renters, which means that between lease agreements landlords have free reign to hike up costs. This lack of certainty places non-homeowners in a vulnerable position.
According to the Public Policy Institute of California, at least a third of renters are spending upwards of half their income on housing, making them “rent burdened.” This is the result of several factors, including
over-regulation, rising labor costs, and restrictive land-use policies.
It’s tough to rent in California because demand outweighs availability. And despite lower mortgage rates, Zillow expects California rental costs to continue to skyrocket.
Should you Buy or Rent a Home?
A fixed-mortgage alleviates the stress of escalating housing costs, but that’s not the only benefit when choosing to buy or rent a home. Becoming a homeowner can give you a sense of belonging and community that renting doesn’t provide. It can be difficult to establish roots, or want to get to know your neighbors, when you’re living lease to lease.
Additionally, purchasing a home is investing in your future. It creates a wealth-building opportunity, and requires you to invest. On the other hand, when you rent, you’re essentially paying a landlord’s bills. It’s income you’ll never see again.
When deciding whether to buy or rent a home it’s important to know what you’re looking for in a property. Before diving into the market, consider your long-term lifestyle goals, such as career and family.
There’s more responsibility in ownership, but also greater security, and value for your hard-earned money.