New research from Realtor.com shows that the monthly costs of owning a home have jumped 14% in the last year.
“Owning a home is kinda like owning a money pit,” says Diana Olick of CNBC’s Reality Check. “You never know what you’re going to be paying for next.”
Olick says researchers considered things like property taxes, insurance and maintenance. They concluded renting might be better than buying a home right now.
“Whether it’s the roof, whether it’s the landscaping or something that breaks, so you always have additional costs when owning a home versus when you rent and someone else has to pay for it,” Olick says.
Although home ownership has historically been a good way to accumulate wealth, she says renters can do it, too.
She adds, “If you take the money you save by renting, and reinvest it, maybe into the stock market or into an income property, you may make more money than just watching the equity in a home you own grow.”
If just for the short term, try renting, she says, at least until home prices settle a bit.