Residents weigh a multitude of factors when deciding whether to rent or buy their home. In addition to lifestyle and personal needs, current economic conditions such as rising interest rates, persistent inflation and housing market shortages are making the decision even more complex.

For many, homeownership might be the ultimate goal, but maybe it’s not the best fit for today. Below are just a few reasons why people are leaning toward rental life instead of homeownership. 

They are carefully considering their costs

In this inflationary environment, many people are debating the economics of buying a home or leasing an apartment. According to Bankrate, as of March 1, the current average 30-year fixed-mortgage rate is hovering around 7%. If someone buys a $250,000 home with a $50,000 down payment with a 30-year fixed mortgage rate of 7.4%, the mortgage payment will be comparable to an all-inclusive rent payment – but also require other financial considerations such as taxes, insurance and maintenance. 

Of course, everyone’s financial picture is different and there are many variables in this equation, but there are some common costs that people are comparing. 

• Upfront costs when buying a home will include the down payment, inspection, closing costs and any necessary repairs at move-in. Renters are typically only required to pay processing and application fees along with a security deposit. 
• Monthly costs for both homeowners and renters will include either their mortgage or rent, water, gas, electric, insurance and sewer/trash. Homeowners will additionally be strapped with property taxes and property maintenance costs, and will likely pay more for insurance than renters. 
• When selling a house, homeowners might get hit with a prepayment penalty on their loan, title search/notary/escrow fees, a mortgage balance payoff, real estate agent commissions, closing costs/credits to the buyer, transfer tax, capital gains tax and a home warranty. Renters, on the other hand, will typically just pay for any damages to their unit and a potential buy-out fee if they are moving out before their lease is up.

They want to leave maintenance behind 

As a homeowner, there is no denying that the list of home maintenance duties and repair projects can feel never-ending. Just a few of the indoor headaches include plumbing problems, faulty HVAC systems, replacing air filters, maintaining appliances and pest extermination. The list continues outdoors with landscaping, snow removal, window washing, roof repairs, gutter cleaning and more. 

For renters, these worries are things of the past. All they need to do is start a work order and let the professionals do the rest. Plus, there is some peace of mind knowing that having on-site property management and maintenance teams means emergency requests can often be addressed within 24 hours.