buy vs. rent index | austin, texas
In the U.S., owning a home is the main way most families build wealth. Around 65% of families own a home, which is more than those who have retirement accounts (51%), stocks (15%), or certificates of deposit (8%). Even among low-income families, 37% own homes. In 2019, homeowners typically had wealth worth $255,000, while renters had only $6,000. Buying a home versus renting and investing elsewhere is a major financial decision. A "buy vs. rent" index in this report looked at the financial outcomes of buying a home versus renting and investing in stocks for different types of buyers. The results showed that, especially in the Austin area, owning a home was generally a better financial choice. This index can help potential homebuyers decide whether to buy or rent, and can assist real estate professionals in advising clients. It's especially relevant given the current high home prices and mortgage rates.