Is There a Cost to Not Purchasing a Home Now?
In buyer-friendly markets, homeowners generally make more money over the life of their ownership than in balanced or sellers’ markets. However in virtually all markets, homeowners see significant financial benefits over lifetime renters. In 88% of U.S.
Metropolitan Statistical Areas (MSAs), buying a home produced a financial benefit of at least $100,000 in 30 years. In buyers’ markets, that benefit will rise to, on average, $217,726 over a 30-year period.
It’s important to realize that opportunity costs are not just financial or lost monetary gains. Opportunity costs can include things like lost time or other delayed or foregone benefits. In the case of home ownership, tax benefits, the ability to access area schools and amenities — and the satisfaction of being a homeowner and realizing the American dream — should all be considered.