BOCA RATON, Fla. – The traditional home-buying season is expected to be one of the best ever but the latest U.S. Housing index shows why many should consider renting instead of owning.
Real Estate Economist Dr. Ken Johnson with Florida Atlantic University’s College of Business said in an overinflated market like the one we’re currently experiencing, renting is the better way to build long term wealth, as long as the money you would have spent on homeownership, from upkeep to HOA fees, is reinvested.
“What’s scary now is if you buy now we’re probably near the peak of the current housing cycle and it could be a number of years that you would hold a property where you had paid more than perhaps what it’s worth or your appreciation had been so low it would be a number of years before you saw a significant gain in terms of a financial return,” Johnson said.
Of the 23 major metropolitan areas studied, 17, including Southeast Florida, favor renting and reinvesting over buying a home in this current market.