{"id":22498,"date":"2025-12-08T11:14:26","date_gmt":"2025-12-08T11:14:26","guid":{"rendered":"https:\/\/budgetadirect.com\/?p=22498"},"modified":"2025-12-08T11:14:28","modified_gmt":"2025-12-08T11:14:28","slug":"with-homes-out-of-reach-renters-are-re-defining-the-american-dream","status":"publish","type":"post","link":"https:\/\/budgetadirect.com\/?p=22498","title":{"rendered":"With Homes Out Of Reach, Renters Are Re-defining The American Dream"},"content":{"rendered":"
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Jordan Perkins, 36, could be a homeowner, but for now, he chooses to rent. He earns a comfortable salary from his sales job and is close to a seven-figure net worth \u2014 the product of an aggressive savings strategy he\u2019s had since his late 20s.\u00a0<\/p>\n

It just makes more sense right now, Perkins says. His two-bedroom condo in San Francisco, nicely situated with a view of the Golden Gate Bridge and Washington Square Park, rents for around $4,500 per month. \u201cTo buy the same unit, I\u2019d be paying around $10,000 per month for the mortgage and need to put 20% down, not to mention insurance, HOA fees and maintenance,\u201d Perkins says.\u00a0<\/p>\n

As their peers pour through real estate listings in search of their \u201cforever\u201d home, a dedicated minority of U.S. adults like Perkins are moving in the opposite direction, finding that renting can provide a financial freedom that homeownership cannot.\u00a0<\/p>\n

The numbers back them up: a Bankrate analysis of housing data shows that homes have become so expensive in recent years that Americans earning the median income are priced out of three in every four homes on the market. It\u2019s also getting cheaper to rent, while the cost of owning is increasingly out of reach for most.\u00a0<\/p>\n

View from Perkins\u2019 apartment<\/em><\/figcaption><\/figure>\n

What\u2019s more, renters don\u2019t need to shell out thousands of dollars to fix broken rain gutters or electrical outlets, and they\u2019re not locked into a 30-year contract. Extra money in their budgets can be used right away or invested, not squirreled away in case an HVAC system busts.\u00a0<\/p>\n

Perkins cites this as a major reason he\u2019s been able to invest and grow his savings. If he owned, \u201cmy money would be tied up in a house \u2014 which might pay off eventually, but it might not,\u201d he says.\u00a0<\/p>\n

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Besides, Perkins, an avid surfer, is determined to live a short drive from the waves. He tells me he could buy his childhood home in Idaho outright if he wanted to, but has no desire to be landlocked. \u201cIt\u2019s not the life I want,\u201d he says.<\/p>\n

\u201cJust because owning a home was my parents\u2019 reality doesn\u2019t mean it has to be mine.\u201d\u00a0<\/p>\n<\/div>\n<\/div>\n

With home prices ratcheting ever higher, prospective buyers are forced to squeeze even more money out of their budgets to stake their claim on a home. In many cases, buyers are spending much more than the real estate industry recommends, putting their finances at risk and making it tougher for the investment to eventually pay off.\u00a0<\/p>\n

\u201cYour home shouldn\u2019t be where your wealth is,\u201d Alabama-based mortgage broker Paul Leara says. When his clients are on the fence about buying, Leara urges them to consider what it costs to buy a house \u2014 closing costs, realtor fees, etc. \u2014 and instead think about putting that money into an index fund.\u00a0<\/p>\n

\u201cIt will compound and grow to dwarf the equity you think you\u2019re getting with a home,\u201d he says.<\/p>\n

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Your home shouldn\u2019t be where your wealth is.<\/p>\n

\u2014 Paul Leara<\/cite>
\n mortgage broker with Mountain Mortgage<\/span>\n <\/p><\/blockquote>\n

Leara\u2019s advice echoes the mindset of renters in a variety of communities around the country. For them, the decision to rent isn\u2019t about settling for what\u2019s in their budget. It\u2019s about creating a level of freedom, flexibility and control that homeownership can\u2019t give.<\/p>\n