The Daily Should You Rent or Buy? The New Math.
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Dec 1, 2023 
David Leonhardt, a senior writer for The New York Times and author of "The Morning" newsletter, delves into the housing crisis facing millennials. He discusses soaring mortgage rates and challenges of homeownership in today's market. Leonhardt prompts listeners to rethink the traditional buy versus rent narrative, emphasizing financial burdens and the potential advantages of renting. He shares personal insights on the emotional facets of homeownership and how generational wealth is affected by current housing dynamics.
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Millennial Housing Challenges
- Millennials struggle with homeownership due to limited savings and lower incomes.
- They haven't had as much time to accumulate wealth as older generations.
Hidden Costs of Buying
- Renting isn't throwing money away; buying has hidden costs too.
- Consider the costs of broker fees, mortgage interest, repairs, and the opportunity cost of a down payment.
Broker Fees and Interest
- Broker fees, often 6% of the home price, inflate the cost for buyers.
- Early mortgage payments consist almost entirely of interest, not equity.