On the radio show of his name, Dave Ramsey appealed to the growing debate about leasing and ownership of the 58 -year -old Chicago Home Owner, who is considering reducing and selling his $ 350,000 home.
One of the factors of her decision was her emergency reserve and $ 1 million. USD 401 (K), so it was sufficiently funded for the upcoming retirement.
Although some leased at the time of purchase may seem safe and financially justified, Ramsey said it could become a “real estate market victim” if it survives with it – and other experts agree.
What Dave Ramsey advises retirees and how tenants compare today, compare
“Rent for 30 years means you are the victim of the real estate market, instead of a wave that has been driving,” Ramsey explained. “Think about what the rent has done in the last 30 years and think about what they will do in 30 years we are talking about.”
Steve SextonGeneral Manager of Sexton Advisory Group, agrees with Ramsey that renting an indefinite period can become a financial trap, especially those with high income and savings.
He notes that in recent years the rent has risen dramatically, and for many people who are approaching retirement, this instability can disrupt a well -planned budget.
“If you are financially disciplined and understand your monthly expenses by capturing a fixed mortgage, you can provide long-term predictability, while turning your monthly housing costs, not just costs,” he adds.
Ramsey offered another option that could have financial meaning, especially for older buyers and sellers: reducing the apartment.
A decrease can be a reliable step for older homeowners and can save them thousands of dollars, especially when they leave and move on to a fixed income.
The listener explained that she no longer wanted to deal with a big house because her children moved and she was tired.
With this in mind, it is clear why she was considering rent: when you rent, repair and problems you take care of you, which facilitates many headaches and home ownership costs.
However, Ramsey’s rent, with the high cost of Chicago transactions, lease may not be financially wise than to reduce smaller homes.
According to Realtor.com®, the average rent for one to two bedrooms in Chicago in May was 1,793 USD-a 1,5% decrease per year, but the eyes grab a 15.1% six-year change.
The Realtor.com report also notes that 25% steel and aluminum rates can increase the rent, “as developers can slow down construction or transfer higher costs to tenants.”
Meanwhile, June In Chicago, the average home list cost was $ 350,000 and the average house list per square foot is $ 276, Realtor.com reports. This price is lower than the national average price of $ 440,950 in June.
Bobbi RebelCardrates.com certified financial planner and personal finance expert, says that this situation reveals that not all home ownership is the same.
“It can benefit from renting a home by buying a house: low practical maintenance, such as having a lower care home. It is by buying a new home that provides services built through the homeowners’ association, it can get a lighter and less stressful lifestyle she wants,” she adds.
Rebell notes that the rental challenge, especially when you are moving to the year of retirement, is that it can be financially risky because you are in the whim of the owner.
“Not only could the landlord raise the rent, but they can just decide that he no longer wants to rent a unit and ask you to leave. Even in places where there are tenant protection laws, contradiction with your landlord is not hassle or stress you want to experience when what you really want is peace and relaxation.
Stacy BrownThe Senior Training Director of Real Properal Management says that persons who are financially disciplined and have clarity on their monthly budget, fixed interest rates mortgage (even occasionally with maintenance costs) can eventually be more controlled than the annual rental lease.
“In addition, the property offers an inflation hedge and the ability to create or preserve property,” she added.
Why can the apartment be the best of both worlds in Chicago
That is why Ramsey offered an alternative to the caller. Moving to an apartment can be the best of both worlds as it would be reduced size and would not waste money on renting.
He pointed out that her home ownership, which is around $ 350,000, could afford lower costs, lower costs, less maintenance and less unknown.
According to Realtor.com, the average cost of cooperative houses in Chicago is around $ 350,000 in 2025.
Although the cooperative house is similar to that of its current homes, it offers privileges such as Hoa-owned maintenance and expected costs, which can be particularly attractive to pensioners.
Brown also notes that in Chicago, where real estate taxes, snow cleaning and maintenance can be intimidating, Condo Living can offer a perfect hybrid model.
“The buyer acquires ownership and ownership, but with joint responsibility and often reduces all maintenance costs,” she says. For a person with $ 350,000 housing property, it is quite possible to purchase a modest, well -operated apartment or, with a small mortgage, leaving pension savings left untouched or minimally affected.
Rebell adds that a house with new appliances and finishes will probably not require maintenance and is a great situation for those who want to reduce their practical involvement in their home.
“If the apartment has a HOA, it can be a way to avoid direct daily participation in supporting the basics or any building care and maintaining a lighter and less stressful lifestyle,” she adds.
This option can make sense for those in this caller, as it allows them to have too much transmission and keep some of the 401 (k) to free up.
Sexton notes that another important point of Ramsey’s advice was the focus of buying in your tools.
“I always say to my customers that simply because they can afford more, it doesn’t mean they should buy a higher. Later in life you want to keep access to your pension accounts and not overflow. Buying a house should strengthen your financial position instead of arranging it.