For many years, the saying has been that the American Dream is to own a home of your own. On a recent Suze Orman Show, Suze stated that she feels the American Dream has changed. For many people it may make more sense to continue renting instead of purchasing a home.
A couple of the major reasons for this change is that how we work has changed and how we retire has changed.
Years ago, most people worked for the same company for 25 to 30 years and received pensions. Most employers who received pensions, did not need to contribute any of their own money. Some employers also covered health insurance costs.
Now, many people change jobs every few years and may need to relocate for their job. Also, with the current housing market in many areas, it may be difficult to sell your house and you may need to sell for less than you owe on your mortgage.
Since most people need to contribute to retirement accounts on their own, this leaves less money for other items such as housing costs. When you take into consideration the total costs of owning a home, it may cost less to rent. Total housing costs include your mortgage payment, interest, taxes, insurance, upkeep and repairs, yard care, snow removal and other costs.
When renting, it is more flexible in the event that you will need to relocate.