Why 2024 Is the Perfect Time to Rent

There’s no doubt that finding the perfect home is a milestone for anyone, from young couples to expanding families and empty nesters ready to enjoy their golden years. But choosing between renting and buying can cast a shadow over this important moment and add excessive stress. 

Due to the looming housing bubble and escalating costs associated with home ownership, renting has become an attractive option for those looking to settle down in 2024.

In this post, we’ll examine why this year is the perfect moment to rent a home in Idaho instead of buying—from financial flexibility to avoiding the potential pitfalls of buying in a volatile market. Let’s get started.

Greater Flexibility in Uncertain Times

Renting offers unmatched flexibility, especially when faced with today’s economic and market uncertainties. Unlike home ownership, renting an apartment or home does not tie you down with long-term financial commitments. This freedom makes it an attractive option for many people, from individuals, couples, and families who can’t afford the steep upfront costs of ownership to those looking to experiment with different solutions before committing to a purchase.

Over the past several years, certain events have highlighted the benefits of renting over buying, including:

• Fluctuating house prices, with significant increases post-COVID followed by unpredictable drops
• An ever-increasing inflation rate, which reached a whopping 9.1% in June 2022, impacting overall financial stability
• The rising cost of living, which has made fixed monthly expenses preferable

Renting offers a buffer against volatile markets and provides a sense of security and flexibility in the event of swift financial changes. 

More Affordable

When comparing the costs and expenses of renting versus buying, the scales often tip toward home rentals. 

Monthly costs

Rental payments are typically lower than mortgage payments, and this does not factor in ongoing costs often associated with owning a home, such as property taxes, homeowners' insurance, closing costs, and maintenance costs. Plus, interest rates continue to rise, thus increasing the monthly costs of homeownership. 

Upfront costs

Renters usually face a security deposit and the first month's rent upfront. Even when totaled up, this cost is significantly less than the average down payment (between 5% and 20% of the property’s market price), closing costs, and additional fees required to purchase a home.

According to The Motley Fool, homeowners with a mortgage pay $8,609 more yearly than renters. 

Less Responsibility and Liability

Being a homeowner isn’t just more expensive; it can also be riskier than renting. Landlords have to absorb all the costs, responsibilities, and liabilities associated with their property and renters, from the aesthetics of the environment to maintenance and safety. 

If you are not prepared to face this burden or prefer a safer option that allows you to live a worry-free life, renting may be the path to take. Here’s why: 

Time and money savings

Renters save considerably more as they are not responsible for maintenance costs or the time it takes to manage repairs. This benefit should not be overlooked. On average, landlords spend around 1% of the property’s total value annually on maintenance. It may not sound like much, but when you run the numbers, you may feel differently.

Stress-free living

Renters don’t have to deal with homeowner headaches such as leaky roofs, plumbing issues, or appliance malfunctions.

Access to Amenities

One of the standout features of many rental agreements is the access to amenities that might otherwise be excessively expensive or cumbersome to maintain individually. Here are some examples: 

On-site facilities

Many rental properties offer amenities such as pools, fitness centers, and community spaces. These may be entirely out of reach of homeowners, who may find them expensive to install and maintain.

No extra costs

If homeowners don’t have pools and fitness centers within their property (which is the case for most property owners), individuals and families may have to invest in subscriptions and memberships at an extra monthly cost. For renters, however, access to these facilities is often included in the rent, eliminating the need for renters to pay separately for gym memberships or recreational activities. Additionally, there is no commute because these facilities are usually within the building.

These amenities enhance the quality of life for renters by providing convenient, easy access to facilities that promote a balanced, active lifestyle.

Opportunity to Diversify Investments

As a homeowner, a significant percentage of your money is likely invested in your property. Although owning a property can undoubtedly offer impressive returns, this is a non-liquid asset. In the short term, you may miss out on other investment opportunities, such as art or dips in the stock market.

Renters can better manage their funds, and this liquidity enables them to diversify their investment portfolios beyond real estate. But why is that important? Diversifying investments spreads risk and can increase potential returns across various assets such as stocks, bonds, or even starting a business. 

Ability to "Test-Drive" Different Locations

Given that the median house price in the US as of the first quarter of 2024 is $420,800, it is easy to see that the decision to settle in a particular neighborhood is significant. Renting provides an unmissable opportunity to explore different living arrangements and neighborhoods without the long-term commitment of buying. 

This "test-drive" feature is particularly beneficial for those navigating life changes or career moves, allowing for easier relocation without the hassle of selling a property. 

Find a Rental in Idaho

In 2024, renting presents numerous benefits, including financial flexibility, reduced responsibility, access to amenities, and the opportunity to diversify investments. It also affords the chance to explore different neighborhoods with ease.

Ultimately, the choice between renting and buying depends on your specific needs and lifestyle goals. If you are still determining which option is best for you, renting a home allows you time to think.

For more information about rental properties in Idaho, contact Rooftop Rentals. Start your hassle-free renting journey today.