Buy a home or rent? A better way to choose

Ozgur Ergungor () and Saeed Zaman

Economic Commentary, 2011, issue Apr

Abstract: Knowing whether buying a home is a better financial move for a family than renting requires a consideration of costs and options that people often neglect to factor in. One aspect of the calculation that is almost always overlooked is uncertainty--the fact that no matter how good one's estimates of the future are, the future can turn out differently than projected. Incorporating uncertainty into the rent-or-buy calculation gives potential homebuyers information that can improve their decisions. While incorporating uncertainty is complicated, it's made easier with the Cleveland Fed's online calculator.

Keywords: Home ownership; Rental housing; Households - Finance (search for similar items in EconPapers)
Date: 2011
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