News

Seven reasons high-income earners are choosing to rent versus buy a house
High Income Real Estate Investment

More and more people are opting to rent, even if they have the option to buy a house.

According recent U.S. Census data, the annual increase in high-income renters (earning $150,000 or more) is growing faster than owner-occupied households, up by 175% from 2007-2017.

RENTCafe gives two reasons high-income earners are making the choice to rent vs. own. First, renting offers the flexibility to live closer to jobs. Renters can also relocate more easily to arts and culture districts within a city, vs. a homeowner.

Second, many of the high-earning renters live in cities with rapidly-increasing home prices. In cities like Seattle, Charlotte, Fort Worth, and Austin where high-paying tech jobs and employment overall are up, the number of new renters far outpaced the number of new homeowners.

Here are a few reasons more people may choose to rent versus own a home:

  • No maintenance costs. The landlord is responsible for making sure the property is in good shape, while homeowners must pay out-of-pocket for things like roof repairs, plumbing leaks, and structural repairs. 
  • Access to fitness centers, pools, and other amenities. Most of these luxuries are part-and-parcel to apartment life, but they can be major, ongoing expenses for homeowners. 
  • Lower taxes. Renters avoid paying property taxes, which are an inevitable part of homeownership, and with property values on the rise in major cities, taxes are going up, too. 
  • It costs less to move. Buying a house means coming up with a down payment (usually 20% of the cost of the house), as well as inspection fees and closing costs. Renters typically only need cash-on-hand for applications fees, deposit and first month’s rent, making a decision to move easier.
  • Downsizing is easy. Renters find it easier to move into more-affordable housing to help make a paycheck stretch further. But homeowners can find themselves locked into an expensive mortgage, and the fees that accompany selling a house can make the process prohibitive.
  • Monthly housing costs are predictable. When you sign a lease, your rent amount is fixed for the entire term of that lease. But mortgages and fluctuating property taxes can cause monthly payments to differ for homeowners.
  • Lower utility costs. Apartments cost less to heat and cool than a house.

(Check out more reasons to rent vs. buy at Investopedia)

If you are interested in the flexibility of luxury apartment living in one of Texas’ five major metro areas, CLICK HERE.

 

The Latest

CLEAR named among the top 40 property management companies in Austin

PropertyManagement.com, a leading resource to help property owners identify reliable, trusted, and experienced property management services in the United States, announced that CLEAR Property Management is among the 2019 Best...

Read more

Seven reasons high-income earners are choosing to rent versus buy a house

More and more people are opting to rent, even if they have the option to buy a house. According recent U.S. Census data, the annual increase in high-income renters (earning...

Read more

Seen enough? Let’s chat.

Contact us

Apartment Search

GO