Considering Homeownership in Today’s Market
In this episode of Dime After Dime, host Anthony Stich and Julie Rich, Senior Vice President at Moran Wealth Management®, explore one of the most personal and financially significant questions investors face.
Rising prices, higher rates, and longer retirements have made housing decisions more nuanced than ever. What was once a predictable path of buying early and paying off by retirement has evolved into a decision that balances cost, flexibility, and long-term financial strategy.
The Changing Meaning of Homeownership
Owning a home was once viewed as a cornerstone of financial independence. Today, lifestyle goals play an equally important role. Some retirees choose to rent to stay mobile or live closer to family, while many younger professionals value the flexibility to relocate for work.
Homeownership remains a powerful wealth-building tool, but it carries hidden costs: taxes, HOA fees, insurance, and maintenance. Renting eliminates those variables and frees capital for investment, though it sacrifices the long-term equity potential that ownership provides.
For most individuals, timing becomes the deciding factor. Industry data shows that six years is typically the break-even point when comparing renting and buying after closing costs and maintenance. If you’re unsure how long you’ll stay in one location, renting may offer flexibility without financial compromise.
The Payoff Question
For existing homeowners, the next dilemma is whether to pay down a mortgage early. A low interest rate can make investing excess cash elsewhere more productive, particularly when portfolio returns may outpace the cost of borrowing.
However, emotional comfort plays a role as well. Entering retirement without debt may offer a greater sense of stability and could help reduce monthly expenses. Incremental approaches, such as making biweekly payments, may shorten loan terms while maintaining flexibility with available assets.
The goal isn’t necessarily to eliminate debt entirely, but to strike a balance between security, flexibility, and opportunity within a broader financial plan.
Planning Beyond the Numbers
Housing decisions don’t exist in isolation. Advisors can model rent-versus-buy scenarios, test payoff strategies, and assess how each choice aligns with your retirement timeline, tax picture, and risk tolerance.
As Julie emphasizes, real estate can be both a home and a hedge, an asset that complements traditional investments and supports long-term goals.
Whether you’re buying your first home, considering a move, or preparing for retirement, clarity comes from understanding how your housing strategy fits within your overall wealth plan.
Your home is more than where you live, it’s part of your financial story. Speak with a Moran Wealth advisor to see how housing choices could align with your overall wealth plan.