Millennium generation and General Zires are demanding the storming of the housing market. But this real estate expert says, “Not everyone should be the owner.”

“If your whole thinking is like, oh, I must buy a house because I am in that era, and I must buy a house,” I do not think this is a good reason to own a house, ” Prince of KurranjiAnd the founder, head and publisher of the real estate news site The real dealHe said luck. Korangy is also a associate professor in Columbia University Engineering College And the oldest colleague and assistant professor in Shack Institute at New York University.

research This year from the Mortgage Technology Company Servicelink He appears Gen Z and Millennials You have a “strong appetite for home ownership”, but many had to abandon the American dream because of the cost. Mortgage rates It is still in a range of 6 %, and home prices is 55 % higher than it was at the beginning of 2020, according to The US National Housing Prices Index that Schiller.

For these reasons, rental is often cheaper than buying a house in the housing market today. June a report from RealTor.com The rent provides more than $ 900 per month, on average, and leasing a house more expensive than purchasing in 49 of the 50 meters in the United States (Bitsburg stands out as the only exception). For this reason, Korangy pushes “freedom of renovation” – especially to get more uproar in Back.

“You can hire a much more beautiful space for yourself more than you can own,” said Korangi. He presented an example of a wealthy buyer with a budget of $ 3 million, and he said for the same cost of buying this house, some person can rent it from 5.5 million dollars to 7 million dollars at the same monthly price.

He said: “It makes sense to rent.”

There are also a lot of hidden houses ownership costs such as insurance, reforms, property taxes, home owners association fees (if possible), landscapes and external maintenance.

“Not only is the mortgage you pay for,” said Korangi. “There are all these things that are added to it. Yes, insurance is not much, but insurance, When it rises … adds what’s up. ”

On the national level, homeowners insurance prices It is expected to extend 8 % This year, but one of the most precious price is to secure a house in Florida and California, given greater risk of harsh weather such as floods, hurricanes and forest fires.

Building household shares is not what it was

One of the main reasons for home ownership is the concept of stock building. By buying a house, you will eventually build shares in that property that you can benefit from in the future when you decide to sell the house.

This was good and good, as people saw home prices rising thanks to the increasing demand in the wake of the epidemic housing boom. The purchase of a house for the owners allows the construction of wealth over time by paying the mortgage payments to reduce the loan manager and increase the owner’s share in the house, perfectly, completely owned. Real estate is usually estimated, which add to the wealth of the owner of the house.

But now that the market has become slowly, but it certainly corrects itself, homeowners do not sit on the same pile of stock they expected in recent years. In fact, appreciation was also home prices Flat Through the United States; The owner of the ordinary American home lost about $ 9,200 in shares during the past year, according to data from the CORELOCIC (Corelogic Company formerly).

To make sure, Leo BondReal estate consultant with Four Seasons Sotheby International RialiTell recently luck This is not a collapse, but “the market correction in the long run.”

Koranji said as long as the person is fine with no construction of shares, then rental is the clear choice.

In addition, you are also “not connected to the market.” “This means (you) to pick up and leave it at any time (you) want. If anything changes (you, you) does not give it. If something happens to the building, (you) do not fill it.

“So there are a lot of goods that come with a rental, and many people benefit from it,” he added. “The truth is that everyone should be the owner.”

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