Rise of Lifetime Renters

Is renting throwing away money or managing risk vs freedom?

by Josh Bibeau on May 12th, 2021

Many current renters are facing a crisis.  They had planned to make a home purchase, saved for years, followed all the steps (lenders, realtors, offers, etc.), but were unable to purchase their first home.  I am seeing this trend rise due to an extremely competitive market, influx of cash buyers, and low inventory.  Does this mean these folks are destined to live a lower quality of life?  Not at all, but with the barrier to entry into homeownership growing many renters are looking to make the most of their situations.   

Renters take advantage of affordability, maintenance free living, and flexibility.  A 2000 sq ft townhome in Helena, MT would likely cost over $1,600 for a monthly mortgage payment, but renting would likely be closer to $1,300.  If that townhome is paid off, the owner may even ask as low as $1000.   Renters also enjoy knowing if the oven breaks, it's not their problem.  They enjoy the roof over their head without the fear it may fall down, and if it does, they move and someone else deals with it!  Renters have unlimited flexibility, and can move without the hassle owners may face.  No listings, showings, escrows, inspections - just give notice and go!  In this unpredictable market and economy, the trade-off renters benefit from doesn’t seem bad at all!

Now, I still believe home ownership is the most stable and easiest entry to generational wealth building, but some are finding with the immediate trade-offs, renting is worth it.  Time will tell where our market goes, but if you have a roof over your head and you live in Montana - you are doubly blessed!!

Thoughts?: josh@bigfootmg.com