The current housing slump has many questioning if the current mortgage rates and home prices are enough to buy rather than rent, and the answer varies for every individual.
In the research study Lessons from Over 30 Years of Buy versus Rent Decisions: Is the American Dream Always Wise by Eli Beracha and Ken H. Johnson, previous research was reinforced when it found that homeownership is a better option for individuals who might otherwise spend the difference between the costs of renting and owning.
Mortgage rates are currently at record lows, sinking just under 4 percent in recent weeks. DataQuick reported that housing prices are also low with the average price in Southern California for the month of October this year at $270,000, down from $283,000 in October last year.
While buying isn't for everyone, homeowners typically end up with more value because a home seems to act as a forced savings account, while research reports a person who rents will most likely lack the financial discipline to save.