Other than a suitable rental not being available, I can think of some other unique situations, but I don’t think it would encompass the majority.
I ask because it doesn’t make financial sense to me, and figured that my situation is similar to others. I rent and pay about $2800 a month for a townhome. (Maryland, not too far from DC) If I was to ever buy around here, I’d want a standalone home that’s a little bigger and better. A moderate, slightly better place with current interest rates and all other factors would cost me about $3800 a month.
Paying $1000 more a month, just over 25% more, does not make it worth it for a slightly better place. Yes you will build equity and can refinance later, but how much later, and how much will you have already put into the house by the time you sell? Throwing numbers around, for me at least, I’d need rates at 5% or less to make it worth it.
I think rates will eventually get there again one day, but until then, I’d feel like I was throwing lots of money away the first few years…or even longer. Like, you can get a 600k home now, sell it years down the road for 900k, after you paid 1.2 million into it. (Mortgage/interest/repairs/upgrades)
For now, I’m just saving up for a 50% down-payment, or waiting until rates get to 5% or below to consider buying…whatever comes first. Both could be awhile. It just doesn’t make financial sense to me until either happens, so I’m wondering what other reasons and benefits people are buying now.