Are you a Baby Boomer who has called your current house home for an extended period and are now contemplating a change? If the idea of selling your house is on your mind, there are numerous factors to take into account. Are you planning to relocate to another state or stay in the vicinity? Are you thinking about downsizing or perhaps expanding to provide more room for your loved ones? However, perhaps the most significant decision revolves around whether you should purchase your next home or opt for renting.

This crucial decision ultimately hinges on your present circumstances and your future aspirations. To assist you in making the right choice, here are two key factors to consider.

Expect Rents to Keep Going Up

The graph below uses data from the Census to show how rents have been climbing steadily since 1988:

Over time, rental prices have exhibited a consistent upward trend. Opting for renting entails the potential inconvenience of facing increased rental payments upon each lease renewal. Coping with escalating rental expenses on an annual basis may not align with your financial preferences.

Conversely, when you purchase a home with a fixed-rate mortgage, it offers the advantage of stabilizing your monthly housing payment. This arrangement empowers you to secure a consistent monthly payment throughout the entire duration of your home loan. This stability ensures that your housing payments remain steady and predictable over the long term, providing you with financial peace of mind.  Freddie Mac sums it up like this:

“. . . homeowners with fixed-rate loans will see little to no change to their monthly housing cost over the life of their loan. You can be confident in knowing that your mortgage payments won’t change much in the long term, even when life’s other costs do.”

Owning Your Home Offers Distinct Advantages

According to AARP, buying your next home is a better long-term strategy than renting:

“Though each option has pros and cons, buying provides more pros, with a broader range of benefits.”

To assist in your decision-making process post-sale, here are some of the advantages of homeownership highlighted in the article:

1. Building Generational Wealth: Owning a home allows you to save for the future and create generational wealth that can improve the lives of your loved ones.
2. Freedom from Monthly Mortgage Payments: Depending on your equity, you may not need to make monthly mortgage payments for your next home purchase. This can alleviate financial stress, although property taxes and maintenance fees may still apply.
3. Simplified Aging in Place: Homeownership grants you the flexibility to adapt your living space to changing needs, making it easier to age in place comfortably.

In conclusion, if you're a baby boomer contemplating the choice between buying or renting your next home, I encourage you to reach out. Given the rising trend in rents and the numerous advantages of homeownership, exploring the option of purchasing your next home could be a prudent decision.

Please note that the actual decision should be made considering individual circumstances and consulting with a financial advisor or real estate professional as needed.