Skepticism and fear has kept many would be buyers on the sidelines. The ensuing damage to home values after the financial crisis has created a larger mass of individuals who feel renting makes more sense than owning. For some families and individuals, renting can make more sense given their current situation. However, financially speaking owning saves hundreds of thousands of dollars for family.

To be fair, homeownership is a big choice and isn't something we recommend to everyone. If you have job uncertainty or think a move may be in your near future, for example, then a shorter term option may make more sense.

But, for those of us with that security and desire to stay in the same area, then you simply cannot beat owning.

Intrinsic benefits aside (i.e. ability to modify home as you please), the shear financial benefit is literally worth years of retirement.

If rents merely keep up with inflation and increase approximately 3% annually, then a $1,500 rent payment would cost the renter $856,358 over 30 years. The same $1,500 made to a fixed 30 year mortgage instead equates to approximately $540,000.

Appreciation and the fact that a homeowner would then own the property free and clear aside, the fact that a fixed mortgage payment never changes results in a homeowner keeping over $315,000 in their own pocket… or a couple years of retirement.