Renting vs. buying a home is a big decision, and there are pros and cons to each option. In recent years, a higher percentage of U.S. households were renting than at any point since 1965, according to a Pew Research Center report.

Renting vs. buying

Buying PROS
• May build equity and credit
• No landlord to answer to
• More stability (especially with schools)
• Possible tax benefits
• Can improve or upgrade home to your taste
Buying Cons
• Requires substantial money, paperwork upfront
• Could lose money if home values decline
• Extra expenses beyond mortgage payments
• Rising home prices and low inventory in many markets
• Responsible for repairs, remodeling

Renting PROS
• Fewer upfront costs and paperwork
• Freedom to be more mobile
• Not responsible for maintenance, repairs
• No need to worry about falling home values
• Build credit (if your landlord reports rent payments to the credit bureaus)
• No property tax bills • Landlord can raise rent or sell the property
Renting Cons
• Choices may be limited depending on vacancies
• Might have to move multiple times
• Don’t build equity
• No tax benefits