Urban Institute Update
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Urban Institute Update
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Measuring the true value of renting versus owning a home
Homeownership is a key way to build wealth in the US, but the rise in interest rates and elevated home prices have made homebuying less affordable. Does that mean owning a home is less valuable than renting?
Existing measures often show homeownership as costlier than renting in many markets. But in a new analysis, Urban shows that properly comparing the value of owning versus renting requires accounting for differences in home characteristics, quality, and location.
When researchers adjusted for differences, they found owner-occupied housing is more valuable than rental housing.
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