Most people believe owning a home is the American dream, right? Not so fast! The American dream of owning a home is actually slowly fading across the country, as a growing demographic of young families opt to rent either out of necessity or by choice to avoid the headache of a mortgage.

The idea that you’re just throwing away money by renting is no longer the rule. In reality, over the past few years, many more people have thrown money away by buying. Renting can make a lot more sense if you are not tied to a geographical area. Remove the hindrance of selling a house, and the pursuit of a better job in another part of the country is much more viable.

If you live an area where housing prices are exceptionally high, your monthly rent payment might be half what a mortgage would cost on a home with identical niceties. In most apartments, it is reasonably affordable to have upgrades like hardwood floors, granite countertops and stainless steel appliances. These upgrades can carry a hefty price tag when purchasing or upgrading a home. Most complexes also have amenities like a pool and fitness center. Skipping a monthly gym membership can add extra cash to your pocket.

As it has been painfully obvious for the past 5 years, playing the housing market can be a dangerous game. If you change jobs frequently or plan to start a family, you may not have the choice of waiting until the market is in your favor to sell a home. If you must sell during a market downturn, you may end up owing more than the house is worth. Unless you are planning to stay in the same home for a very long time, renting may be a more sound financial decision.

While interest rates have been low since the onset of the housing crisis, you still have to have decent credit to take advantage of lower rates. If your credit is not established, or is poor, you definitely want to rent to improve your credit score. Poor credit can add tens and even hundreds of thousands of dollars to your payments over the course of 30 years.