The Cost of Renting versus Owning a Home

Abstract

have an average equity of $7,300.1 For homeowning families the home is typically their largest single investment. Though occupancy costs are a large item in family budgets, and homeownership is one of the most important investments American families make, there is a paucity of rigorous, analytical comparisons showing whether homeownership is more economical or expensive than renting as a way to procure the services of housing.