Some people around the world prioritise owning a house over renting one, which enables them to have a stable life and save more money over time. While buying a house is considered a crucial financial move for some people, I believe that renting a house is a smarter decision due to some economical reasons.
Real estate is type of asset that can produce income for the owner as rent. Despite being expensive, many people aim to buy a house in order to live a life of financial freedom which means that they will have more options to spend their money on instead of paying rent. For instance, many home owners invest their money on stocks or index funds, which they wouldn’t be able to do if they had to pay a certain amount of money to their landlords each month.
On the other hand, buying a house is not an easy thing to pull off when the prices are so high. In many countries, an average working couple would have to save money for decades to be able to own a house, whereas they can rent an apartment in a good area by paying a fraction of the cost. As an example, people can rent a full furnished apartment near central park in New York, but it would take years for them to save the money to buy the same place.
In conclusion, people would rather to buy a house to be able to achieve financial freedom and not pay a part of their income as rent, however, due to high costs of houses and inflation, I think that, at the moment, the benefits of renting a place outweigh those of buying one.