You're not obligated to buy property every time you move. I've lived in twelve places in four different countries over the past decade and didn't buy any of them.
The financial outcome for not buying property adds up after ~10 years. On paper, I've been paid to live in my current residence every year that I've owned due to housing appreciation. If I had rented - the financial delta compared to renting would be between ~400k-1MM dollars over 10 years depending on how one counts.
It would require a very large income to offset the financial cost of renting a home, which would in turn reduce the likelihood that I would take a financial risk on a new startup or push harder at work.
Your post I was responding to was complaining of financial pain in buying a home. Now you're saying it's a financial benefit. Either way, what I'm saying is that you have a choice.
Also, it's worth pointing out that your 10 year sample happened to be one during which housing construction was at historically low rates, which lead to exceptional increases in housing prices. There are other 10 year spans in which your outcome would have been very different.
There is currently a shortage of ~3-4 million housing units in the US. This shortage will continue into the future due to a shortage of people to build housing, the cost to build, and a population that remains steady due to immigration inflows. Buying in the US will remain a net positive financial decision well into the future based on these housing fundamentals.
Most attribute that to rising interest rates at the time. Given that the prime rate now is just 40% of what it was in 1980, it's not like interest rates can't rise enough to impact the housing market at some point in the future.
Original point was that a forced move carries a financial cost, as home prices rise - this financial cost rises relative to income. This dynamic creates a disincentive for individuals to move due to the cost relative to income. If individuals are disincentivized from working on the highest impact projects they can - you'd expect an impact on economic productivity.
It's a large financial benefit to own a home, it's a massive cost to move for a job if that forces you to abandon home ownership in favor of renting. This cost would incentivize workers to work at jobs which don't make use of their skills or avoid jobs which could leave them in a career desert of a location.
Exactly. I’m going to give up housing and payment security for an at will job while being exposed to brutalist rental markets that try to “juice the hog”? Absolutely not.
