Is It Better to Rent or Buy a Home?

How to decide whether to rent a house or apartment or purchase a home or condo. What has been the financial return from owning a house? Topics covered include:How much have home prices increased in major cities since 1980What drove the greater than 50% jump in home prices in some U.S. cities since 2020Why there aren't more new starter homesWhat will it take for the housing shortage to abate so houses can be more affordableWhy now could be a more advantageous time to rent versus buyWhat academics estimate the long-term return is for owning a house, and why the calculations are incompleteHow to determine what your total cost of ownership is for buying a house in order to compare it to renting For more information on this episode click here. Sponsors NetSuite – the leading integrated cloud business software suite Use code MONEY10 to get 10% off on your NAPA Autoparts online order. Insiders Guide Email Newsletter Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter. Show Notes The housing theory of everything by John Myers & Ben Southwood & Sam Bowman—Works in Progress Irish property: the boom that shows no signs of slowing by Jude Webber—The Financial Times Whatever Happened to the Starter Home? by Emily Badger—The New York Times The Housing Revolution Is Coming by M. Nolan Gray—The Atlantic In Today’s Housing Market, It’s Timing Over Location by Joe Pinsker—The Wall Street Journal The Rate of Return on Real Estate: Long-Run Micro-Level Evidence by David Chambers, Christophe Spaenjers, and Eva Steiner—Oxford Academic The Rate of Return on Everything, 1870–2015 by Òscar Jordà, Katharina Knoll, Dmitry Kuvshinov, Moritz Schularick, and Alan M. Taylor—National Bureau of Economic Research See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.