Some argue that renting eliminates the cost of property taxes and home repairs. Every potential renter must realize that all the expenses the landlord incurs (property taxes, repairs, insurance, etc.) are already baked into the rent payment – along with a profit margin. You don’t save money by renting.
As proof of this, First American broke down the net worth of homeowners and renters by income categories. Here are their findings below:
Only one income category ($127-192K) has a higher net worth for renters over homeowners if you take out the equity in their home. Every other category shows that being a homeowner leads to greater accumulated wealth.
If you include the equity in their home it isn't even close!