Why is everyone renting an apartment instead of buying a house?

Question

I was just wondering about this question i had in mind because we find apartments that are for rent and we pay a rent that is as much as a mortgage.. why even bother when we can just buy a house .well i understand ome of us really don't have the money ....just a thought i guess.

Answer 1

Not "everyone" is renting, I know of a number of people that are investing heavily right now.

P.s. To answer Jess above - the reason why people are not buying is because they choose not to. Now is the best time to find houses that you can buy without needing a down payment, or even good credit.

Answer 2

3 major reasons

1.  In some markets, such as Hampton Roads, VA, renting is much cheaper then buying a house.  

2.  The tighter lending has forced people out of the housing game

3.  They are concerned about their job situation and the economy as a whole, and dont want to be tied to an asset that could sink them.

Answer 3

how about not having enough money for a down payment on the house

Answer 4

I think there are quite a few reasons.

1.) Somone may not have the money for a down payment or the credit to buy a home. They also may not trust themselves to make a mortgage payment on time.

2) Some people may not be sure what area they want to live or there work doesn't allow them to stay in one spot for long.

3.) Other people rent because in a sense the house/apartment will never be "yours" but at the same time you don't have to deal with taxes and upkeep of the house. Like I'd be afraid if I owned a house and my air broke or I needed a new roof and couldn't afford it- then I be screwed, but when you rent if anything breaks its no money out of your pocket.

Answer 5

Where do you live that rent is as much as a mortgage?  Ok, rent on an apartment in NYC could easily be as much as a mortgage in the Midwest, but it’s not common to find a normal apartment rent be as much as a normal house payment in a given area.  If I had spend as much on apartment rent as I spend on my mortgage, I’d have been in a fabulous place in a great neighborhood.  

When I bought a house, my mortgage was twice what my rent has been. The utilities are higher. Owners insurance is exponentially more than renter’s insurance, and now I pay for all maintenance and repairs. I feel that my extra expenses will pay off when I sell the house down the line, and I wouldn’t trade the freedom of ownership for a lower payment, but it’s definitely not the same cost.  

Answer 6

there's a word called The Great Depression...yeah.

umm, i heard many times that people are saying there's great depression going on mainly b/c of item prices are going up & gas prices.

Answer 7

The biggest thing that prevents people from being able to come right out and buy a house it the down payment. On apartments, all you have is the deposit before you move in, and it's usually just the cost of rent. However, the down payment on the house is like a certain percentage of the mortgage. Usually they are at least ten thousand dollars.

Answer 8

Some people don't like to be committed to the same area for years.  Also, with the tightening credit requirements, some people may not have the minimum time in their job, debt to income ratio, or savings required to purchase a home.