With rental homes scarce and rent prices on the rise buying a home beats renting.

There are two main factors at play that make buying versus renting a better choice.

1. According to Rent.com, over the next two years rents could rise 7%.
2. Nationally, home prices have finally dropped enough to create a buying opportunity. Since the price peak in 2006, home prices are down 32%.

What does this mean for your pocketbook? Home ownership is a forced savings plan. The mortgage bill comes in every month, the homeowner pays it and the mortgage balance goes down. Experts agree most homeowners will break even after just eight years in their home.

Renters, meanwhile, are just as likely to spend their savings as homeowners. They’ll wind up with less money over the long haul because they have no forced savings.  To see the real savings in dollars and cents, use a Rent vs. Buy Calculator.