Homeownership is often considered a key factor in financial security. However, personal finance expert Suze Orman has a different take. She believes that renting is a much better option for many people in today’s economy.
With rising home prices, skyrocketing insurance rates and costly home maintenance, homeownership is becoming less affordable. Orman has offered advice to those who are struggling with the idea of renting.
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A Listener's Concerns About Renting
On a recent episode of the Women & Money podcast, a listener challenged Orman's stance on renting. The listener said that people shouldn't be renting because of the unpredictability of rent prices increasing and the risk of eviction. The listener bought her own home in Staten Island, New York, in 1984.
"Are you kidding me?" Orman said. "She’s comparing 1984 to now. Are you just kidding me?"
Orman acknowledged that homeownership was a great option for previous generations because real estate was more affordable. But she said that comparing homeownership and real estate prices from decades ago to today's market is unrealistic.
"All of us who are older lived in a very privileged time," Orman stated. "We lived in a time when real estate was really so inexpensive, I can’t tell you."
Homeownership Costs Have Skyrocketed
Orman noted that many people cannot afford a home today due to high upfront costs and ongoing expenses. She highlighted several financial burdens that homeowners face, including:
- Rising insurance costs: In states like Florida, some homeowners are selling their properties because they can no longer afford insurance premiums.
- Unexpected maintenance expenses: A recent survey found that 83% of homeowners faced unexpected repairs in 2024 – compared to 46% in 2023 – with 46% of homeowners spending $5,000 or more out of pocket for home repairs.
- Job instability: With AI-driven job losses and layoffs in various industries, maintaining mortgage payments has become more challenging.
Given these factors, Orman suggested that renting can be a practical alternative for those who cannot comfortably afford homeownership.
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Renting Doesn't Mean Financial Instability
Orman addressed the common belief that renting is "throwing money away." "If you need to rent, then rent," she said. "Owning a home is not the key to absolutely being financially secure."
She explained that financial security comes from smart money management, not just homeownership. Instead of struggling to afford a mortgage, renters can focus on building their savings and investments.
She showed that saving just $100 monthly for 40 years could grow to $1 million with compounding interest. Even with inflation, this sum would still hold significant value in retirement. "I don't want your dream to be you have to be a homeowner in order to be financially dependent," she said. "You do not."
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The Reality of Homeownership Regrets
While homeownership has long been seen as a financial milestone, it doesn't always lead to satisfaction. Orman cited a study revealing that 73% of homeowners in 2024 regretted something about their home purchase. This study from Hippo's 2025 Housepower Report also revealed that 34% of homeowners regret paying a mortgage rate higher than they can comfortably afford, and 29% feel regret after unexpected maintenance issues have come up.
Orman remains an advocate for homeownership but only if it's financially feasible. She encourages people to evaluate their circumstances, consider long-term costs and make informed decisions based on their financial situation.
For those struggling with affordability, she reassures them: "It's OK to just rent."
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