Questions about housing tend to arise during times of economic downturn. And one of the most frequent questions is whether it’s better to rent or buy housing during a recession. Here are some points to think about when considering that question for yourself.

What Is Your Employment Situation?

If you work in an industry that is solidly recession proof, you may be better off buying a house instead of renting. With reliable employment, you can jump on discounted homes and more confidently afford the mortgage payments. However, if you work in an industry that could be impacted by the recession, you may be better off renting. No one wants to be stuck with a decades-long mortgage that they can no longer afford. The flexibility, low upfront costs, and shorter-term obligations you have while renting can save you from a heartbreaking foreclosure.

Do You Have a Financial Safety Net?

Even if you have a job that is reasonably recession proof, you might not have a comfortable amount of savings to act as your safety net. Without a safety net, you may not be able to afford a house down payment while keeping a recession emergency fund. Qualifying for a mortgage can also be more challenging during a recession as lenders become more risk averse. In this situation, you could be better off renting and saving whatever you can.

What Can You Afford?

House prices tend to go down during recession, as does rent. However, rent prices can go back up after a recession, while fixed-rate mortgage payments stay consistent. If you have the means to lock in an attractive mortgage that you can afford, buying may be the best choice. If this isn’t the case, renting can be a better option.

Attractive Alachua Apartments

If you’re in the market for an apartment in Alachua, Florida, you need to see One 51 Place! Contact us today to hear more about our housing options or to schedule a tour.