Millennial homeowner says buying a house at 30 was challenging and renting is worthwhile.

Millennial homeowner says buying a house at 30 was challenging and renting is worthwhile.

Renting vs Homeownership: Debunking Money Myths and Considering the Better Option


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Melissa Jean-Baptiste, despite being a homeowner herself, recognizes the value of renting. Renting provides flexibility and an opportunity to save money. Homeownership, while often portrayed as a dream, is not always as glamorous as it seems. In her book, “So … This Is Why I’m Broke,” Jean-Baptiste candidly shares her experience, stating, “I do not mince words when I say that homeownership is hands down one of the hardest things I’ve ever done.” She felt unprepared, overwhelmed, and uncertain throughout the first year.

Jean-Baptiste challenges the widespread belief that renting is throwing money away, emphasizing that paying for housing should not be considered a waste. Instead, taking the time to rent allows individuals to ensure they are truly ready for homeownership. Before signing on the dotted line, it’s crucial to carefully consider various factors.

Interestingly, the state of the housing market further supports the argument for considering renting over homeownership. With rising interest rates and stricter mortgage approval processes, finding an affordable home to buy becomes increasingly challenging. According to, home listings have dropped by almost 16% in 2023. Even if you can find and buy a home, it’s essential to evaluate whether it is the right move for you at this moment.

Renting presents several advantages over homeownership, especially considering the ever-changing dynamics of our lives and finances. Let’s dive into some reasons why renting might be the better option for you and your wallet right now:

1. Your lifestyle might change

If you have aspirations of living elsewhere, lack job security, or are uncertain about settling in the same place for at least three years, renting provides more flexibility. Owning a home typically requires a commitment of three to five years to recoup costs, build equity, and potentially make a profit upon sale. Renting allows you to adapt to new opportunities and reduce the stress of tying yourself down to a single location.

2. You don’t want to worry about — or pay for — home maintenance

One major advantage of renting is the freedom from excessive home maintenance responsibilities. Should the dishwasher malfunction, you can simply call the landlord or property manager to address the issue, with the cost falling on them. However, as a homeowner, you bear the financial burden of maintenance issues. Whenever unexpected repairs arise, you must dip into your own pocket to rectify the situation. Renting eliminates these potential worries and expenses.

3. You have other wealth-building goals

Contrary to popular belief, homeownership does not always guarantee financial growth, particularly if the cost stretches your budget. Renting, in contrast, can provide an opportunity to save and invest your money elsewhere. Suppose your potential mortgage payment amounts to $2,500 per month, but you are able to rent a comparable property for $1,800. In this scenario, you can allocate the extra $700 to a high-yield savings account, investments, or even debt repayment, significantly boosting your net worth while still renting.

Although the allure of homeownership, such as tax breaks and building equity, can be tempting, it is crucial not to rush into it before you are truly ready. Purchasing a home is a challenging endeavor, compounded further in today’s market conditions. Apart from initial costs, the ongoing commitment to maintaining a home impacts both your financial well-being and budget. Making the jump into homeownership prematurely might have detrimental effects on your long-term financial stability.

Whether you decide to rent until you are financially prepared for homeownership or simply prefer the freedom that renting offers, rest assured that you are neither wasting your time nor your money. Renting provides an opportunity to assess your financial readiness and make informed decisions based on your unique circumstances and goals.