The Federal Reserve found that in 2016 the median homeowner’s net worth was $231,400 while the average renter’s net worth was $5,200. Certainly, it makes sense for your long term wealth for you to ultimately be a homeowner. However, sometimes you should rent a home instead of buying one.
If you move to an area you haven’t even visited before you may want to rent in a couple parts of town before buying to make sure you like the neighborhood/area. You may also choose to rent if you are not comfortable with your job stability (savings can offset this risk to an extent). Finally, you may want to rent if you do not have enough in savings to be a homeowner (the down payment, closing costs, and savings left for repairs and such). On that note, there are certain loan programs that may make sense for you even if you don’t have 20% saved for a down payment plus you might be eligible for assistance programs.
Bottom line, trust your gut and don’t rush into home ownership if renting makes more sense given your personal situation. If you aren’t sure if home ownership or renting makes sense for you feel free to contact me and we can chat about it to ensure you make an informed decision.