Why it feels impossible to escape the rent cycle

Mortgage applications continue to slump — a sign that economic indicators are worrying borrowers. Meanwhile, rent continues to rise across the country, wreaking havoc to already tight budgets and posing a significant barrier for renters who are prospective homebuyers. The age-old question is again top-of-mind in this economy: Is it better to rent or buy?

Both renting and homeownership have their benefits and setbacks, but homeowners do have an overwhelming leg up in one category — wealth. The median homeowner has a net worth of about $400,000, compared to a renter’s $10,400 — a stark difference.

In our guide, we break down what’s behind the wealth gap, how homeownership affects wealth and how to build wealth if you’re renting. We’ve also got some advice for aspiring homeowners.

Wealth: Renting vs. Owning

A time machine wouldn't save you, at least on interest:

Today's mortgage rates are better than or equal to the 1990s and 2000s

IN THIS ISSUE

How 1 Extra Mortgage Payment a Year Pays Off Your Home Faster

Ways to Make Money if You Hate People

How to Make a Retirement Budget So You Don't Outlive Your Savings

Things Frugal People Never Spend Money On

Places to Get Additional Income Without Having to Work More

a piggy bank on a suburban street with a city in the background

How 1 Extra Mortgage Payment a Year Pays Off Your Home Faster

A rare case of when 13 is luckier than 12. One extra mortgage payment a year moves you that much closer to paying off your home loan.

Learn More →

an illustration of a woman working from home with her dog at her side

Ways to Make Money if You Hate People

If you'd rather work alone, then you're probably well suited to snap up these gently misanthropic ways to make money. Less blah-blah, more moolah.

How to Make a Retirement Budget So You Don't Outlive Your Savings

Is your retirement plan just hoping you won't get old? That probably isn't going to cut it. Here's how retirement budgets work.

Learn More →

Things Frugal People Never Spend Money On

Here's how some people can stretch their dollars so far: Knowing what NOT to buy. These are best habits we learned from frugal people.

Learn More →

Places to Get Additional Income Without Having to Work More

Need extra cash without the headache of an extra job? Check out these resources.

Learn More →

BEST REWARDS
CARDS OF 2025

Maximize Your Spending

Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Learn more about how we make money and select our advertising partners. We’re letting you know because it’s what Honest Abe would do. After all, he is on our favorite coin.

View in browser

Mailing preferences | Unsubscribe | Privacy Policy