If you continue to rent apartment or home in Santa Cruz, you will end up losing more money - a lot of it. And it's not so much that you lose money - it's that you fail to add to your net worth.  Consider these three bitter truths about renting a home in Santa Cruz.

1.     You are making yourself responsible for another owner's mortgage loan. Santa Cruz real estate has a strong history of price appreciation - which you gain nothing from as a tenant. Appreciation relates to the increase in the value of an asset or property and it is the landlord that will enjoy this property appreciation. Over the past five years while you're been renting, landlords have increased their net worth by, literally, trillions of dollars.  Why are you missing out?

2.     Unlike home owners, renters cannot freeze their monthly housing expenses. Most homeowners lock in 30-year mortgage rates; their housing payment will rise only slightly over the years. You might want to check the cost of a Santa Cruz rental today in relation to what it was ten years ago if you want to have a clear picture. Today in Santa Cruz, will have to fork out about $2,500-$3500 for a two-bedroom condo/apartment/home whereas the cost was about half that in 2008. As time goes by, owners pay less for their housing than renters do.  A lot less.

3.     Unless you're living in an apartment building, which few people do in Santa Cruz, you have a lot of housing insecurity.  The owner of the home you're renting could decide to hit you with a big rent increase any time your lease expires - or worse, you could just be kicked out when the landlord wants to sell or move a family member in. 

Renting in Santa Cruz means you are setting yourself up for a lifetime of high housing costs and low net worth. The facts are that homeowners have a net worth that's about 37 times greater than renters.  There are many other documented benefits of homeownership, and I encourage you to do your own research on the subject.  The evidence is clear:  home ownership is richly rewarding on many levels.