The real estate market has changed to the extent that home ownership is not necessarily the best financial option. People may come out ahead by selling their home and renting either a house, apartment, or condo. This option frees all of their home equity for living expenses.

To calculate a financial analysis of owning versus renting, add up all the costs associated with home ownership. This includes the direct costs of taxes, insurance, and maintenance, plus the opportunity cost of earnings on the capital tied up in the home. Then, compare this figure to what it would cost People to rent adequate housing.