Washington, DC - Homeownership may be the American Dream, but it is not always the best financial choice. According to a new brochure titled Don't Buy the Myths: Renting Can Be a Smart Investment, many consumers actually end up paying more to buy than they would have to rent.

Now consumers considering buying a house have a new tool to help them understand the true costs of homeownership. Don't Buy the Myths: Renting Can Be a Smart Investment examines the most common financial misunderstandings about owning a house and offers a series of "reality checks" for would-be buyers.

The best kept secret in the housing market is that renting is often the better financial choice," explains Douglas M. Bibby, President of the National Multi Housing Council, which jointly published the brochure with the National Apartment Association (NAA). "Researchers estimate that nearly 20 percent of house buyers would have saved money by renting, while another report by Harvard University concluded that 'in many places, at many times, and for many holding periods during the past 15 years, renting made better financial sense than owning'."

Americans today are busier, more mobile and less willing to spend our limited free time maintaining a house. We know that apartment living might better suit our lifestyle, but we feel pressured to buy because we are afraid that renting is 'throwing your money away'," explained Doug Culkin, Executive Vice President of NAA. "This brochure gives consumers the confidence to choose the best housing for them as well as the information they need to counter all those well-meaning people who keep telling them that they need to buy a house."

There may be many good reasons to buy a house," noted Bibby, "but most of them are not financial. The tax savings and investment potential associated with homeownership are often overstated, while the costs of owning and maintaining a house are frequently understated."

Don't Buy the Myths: Renting Can Be a Smart Investment offers real-and perhaps surprising-answers to several of the top homeownership myths, including:

• Myth: I'll reduce my tax bill if I buy a house.
  Reality: A majority of homeowners reap no annual tax benefits from owning a house.

• Myth: Paying rent is throwing away money.
  Reality: For the first five years of ownership, you are simply giving away your money to a bank. Nearly one-third of all buyers move within five years-before they start building any real equity.
   
• Myth: My mortgage payment will be less than my rent.
  Reality: Your mortgage payment is just the beginning. The "hidden costs" of ownership can add up to thousands of dollars a year.
   
• Myth: As an owner, my housing costs will stay constant. I won't have to worry about rent increases.
  Reality: Your mortgage may remain constant, but other costs, such as maintenance, insurance and property taxes can go up significantly every year. And if you have an adjustable-rate mortgage, your mortgage payment itself can increase.
   

• Myth: Investing in a house is a safe investment.
  Reality: Even in today's healthy housing market, stocks and bonds often still offer a better return.

A copy of Don't Buy the Myths: Renting Can Be a Smart Investment is posted on NMHC's web site. Single copies are available at no cost by contacting NMHC at 202-974-2354. Bulk orders can be placed with NAA online or by calling 703-518-6141.