Most people don’t buy a home outright. They take out a long-term low-interest loan (mortgage literally means “pledge till death” although they typically only last 15-30 years) to pay back the house in installments. However, before you can take out this loan, banks will often demand a down payment equal to 20% of the total value of the property. With the high price of housing, this down payment can be substantial - a $500k house requires a $100k down payment.
Renters don’t need to make these large advanced payments in order to get access to a rental unit. You aren’t required to have $100k in the bank before you get your own place.
Most people don’t buy a home outright. They take out a long-term low-interest loan (mortgage literally means “pledge till death” although they typically only last 15-30 years) to pay back the house in installments. However, before you can take out this loan, banks will often demand a down payment equal to 20% of the total value of the property. With the high price of housing, this down payment can be substantial - a $500k house requires a $100k down payment.
Renters don’t need to make these large advanced payments in order to get access to a rental unit. You aren’t required to have $100k in the bank before you get your own place.