While for most of the population, owning a home is cheaper than renting one, that isn’t the case for retirees or those about to retire, according to Trulia’s Rent vs. Buy Report.
In the 100 largest U.S. metropolitan areas, the driving force on why buying may be more affordable is that mortgage rates are still low.
But Trulia found that things are different for retirees. Retirees are better off renting than owning, the real estate site found. The reasons? Retirees are more likely to stay in the house longer (15 years instead of the average seven), put down a 20 percent downpayment, and generally fall in a lower tax bracket (15 percent instead of 25 percent). There is one exception to the rent-don’t-buy is better: Those who want to leave an inheritance to their heirs. If retirees don’t care about having equity in their home at the end of their life, renting is a better option.
In every retiree city that Trulia examined, renting is a cheaper deal.