We’re in a recession. Is it better to buy or keep renting?

Whether it's better to buy or rent during a recession depends on several factors, including your personal financial situation, the housing market, and the overall economy.

In a recession, the housing market can be affected in different ways. On one hand, lower demand can result in lower home prices, which can make it a good time to buy a home. If you have a stable income and good credit, you may be able to negotiate a lower price or take advantage of lower interest rates, which can make homeownership more affordable.

However, during a recession, there is also a risk of further price decreases. If you purchase a home and then experience a significant decrease in the value of your property, it may be difficult to sell it or refinance your mortgage. Additionally, if you lose your job or experience a significant reduction in income, it may become difficult to make your mortgage payments, putting your financial stability at risk.

In this case renting can provide more security and peace of mind during a recession. If you experience a job loss or a reduction in income, you may be able to find a less expensive rental property, which can help you reduce your housing expenses. Additionally, if the value of your rental property decreases, it is the landlord's responsibility, not yours.

The decision to buy or rent during a recession depends on your financial stability, the state of the housing market, and your personal preferences and priorities. If you have a stable income and good credit, and if you're prepared to make a long-term commitment, buying a home may be a good option. However, if you are uncertain about your financial future, it may be better to rent, as it provides more flexibility.

Ultimately, the decision to buy or rent during a recession depends on your personal circumstances, and you should carefully consider your options before making a decision. You may want to consult your financial advisor for guidance.