Traditionally, buying a home was the quickest way for an American to accumulate wealth and build equity. However, more Americans (37%, the highest since the mid 1960's) are making the decision to rent, which isn't necessarily putting them at a disadvantage.
New York Times staffer Tara Siegel Bernard reports on the debate between owning a home versus renting a home. She looks at the benefits of buying for those who plan to stay in the same area for at least five to seven years such as the predictability of a mortgage payment:
Buying also generally protects consumers from rising rents, while traditional mortgage payments remain constant.
But for those who decide to rent, there are advantages, according to a HelloWallet study:
The study projects that median-income families, or those who earn about $50,000, will often end up with more net wealth if they rent versus own over the 10 years from 2013 to 2022.