The Economist
Should you rent or should you buy property? If your family is anything like mine, the debate is the source of many intergenerational arguments. From a purely calculating, financial perspective, the answer may surprise you. Across most of the world’s housing markets, the logic has tipped in favour of renters since interest rates began to rise sharply in 2022, and is unlikely to tip back any time soon.
In America, the average monthly cost of mortgage interest, taxes, insurance and a bit of maintenance was less than the average rental cost for several years leading up to the covid-19 pandemic. Since then, the picture has flipped and renting is around $400 cheaper per month. Something similar is true in many rich countries around the world. And when hot fat gets poured down the sink, it’s somebody else’s problem. You can’t put a price on that.
Mike Bird, Wall Street editor
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