Perhaps sick of being told they could own a home if they only cut back on avocado toast, some US millennials are questioning the shibboleth of home ownership — and the financial model sold to successive generations that your home should be your main source of wealth.
In a viral post on social media platform X, Leandra Peters, under the handle @LPinFinance, broke down the argument for renting rather than buying: “My rent: $2,400. This is not the same as a $2,400 mortgage,” she wrote. “My rent is the maximum I’ll pay per month. A mortgage would be the minimum I’d pay per month.
“The current home I’m renting is valued at $1.1mn. Let’s do some maths: buying this same home at 6.8 per cent interest over a 30-year fixed term would give me a mortgage payment of $7,171. Homeowner’s insurance: $104 property taxes: $688 HOA: $414 . . . I’d be at $8,377 per month. I think I’ll stick to renting.”