Owning a home has rarely been this much more expensive than renting

Published On Nov 20, 2024, 1:01 PM

Owning a home has become significantly more expensive compared to renting, with current homeownership costs estimated to be at least 35% higher than renting—an extreme increase from traditional levels. This surge is attributed to rising mortgage rates, increased homeowners insurance premiums, and overall higher housing costs. While some predict a slight easing of this premium in 2025 if mortgage rates drop and rents increase, the general outlook suggests that home prices will remain near record highs. The trend indicates a shift among consumers towards renting rather than buying, as a record percentage of renters express a preference to continue renting instead of purchasing homes.