My experience is that owning is cheaper than renting in the long run. It makes sense in the broad context because when you rent you still have to cover all of the costs, but they just get hidden in your monthly rent, and additionally you need to pay the landlord--an expense you don't have with ownership. There is a modest benefit in spreading out the risk as well, if you have a major maintenance expense you won't be responsible for the cost up front, however homeowners can purchase insurance that does the same thing (but are usually a pretty bad deal IMHO).
There are some efficiencies to renting. The maintenance can be done by dedicated staff at negotiated rates instead of having to hire outside work. But the efficiencies don't really appear until you're living in a massive complex with lots of other customers to spread the cost around.
When I bought my first house my $1700/month rent for a 800 square foot apartment became a $1000/month mortgage for a 1400 square foot townhouse in a better part of town. And unlike renting I would eventually run out of mortgage after 30 years and have a big asset in my name, one that is likely to appreciate in value over the long term.
In the long term renting is a pretty bad deal for everybody but the landlord.
There are some efficiencies to renting. The maintenance can be done by dedicated staff at negotiated rates instead of having to hire outside work. But the efficiencies don't really appear until you're living in a massive complex with lots of other customers to spread the cost around.
When I bought my first house my $1700/month rent for a 800 square foot apartment became a $1000/month mortgage for a 1400 square foot townhouse in a better part of town. And unlike renting I would eventually run out of mortgage after 30 years and have a big asset in my name, one that is likely to appreciate in value over the long term.
In the long term renting is a pretty bad deal for everybody but the landlord.