Here's What the Average American Will Spend in Their Lifetime to Own a House. Is It Worth It?

It's not exactly a secret that owning a home is an expensive prospect -- especially these days, with mortgage lenders charging some of the highest rates we've seen in years. But even during periods when home values aren't as high and mortgages aren't as expensive to sign, owning a home can still be costly -- more so than renting, since you have to factor in additional expenses.

It might surprise you, however, to learn that the average American will spend nearly $1.49 million to own a home in their lifetime, according to data from OneMain Financial. But while that might sound like a lot of money, it may be worth it to you.

Breaking down the cost of homeownership

There are numerous expenses homeowners have to cover that renters do not. These include:

• Property taxes
• Homeowners insurance
• Regular maintenance
• Repairs that come up

Over time, these costs can add up to a lot. 

But are they worth it?

Well, it depends. Let's say your home costs you $1.49 million in your lifetime, but you end up living there for 50 years. All told, you're spending a little under $30,000 a year, or a bit less than $2,500 a month, to own your own place.

When we compare the cost of owning a home to renting one, renters might get away with spending less in their lifetime. The average monthly rent today is $1,967, according to Rent.com data. So that's about $23,600 per year instead of closer to $30,000, which is what the typical homeowner might spend.

However, there are other benefits of owning a home to consider. First, someone paying a mortgage may be able to deduct the interest portion of it on their taxes if they itemize, thereby making back some of that money. Property taxes may also be deductible. (Right now there's a cap of $10,000 a year for state and local taxes, which include property taxes.) 

But financial benefits aside, owning a home can lead to more stability. When you rent, your landlord could decide to sell their property at any time. Or, they could decide not to renew your lease even if you didn't do anything wrong as a tenant. When you own a home, you can't be kicked out provided you're paying your mortgage and property taxes. 

Plus, when you own a home, you get to make your own rules. When you rent, your landlord gets to dictate a lot of things, such as if you're allowed to have a pet on the premises. 

All told, it's very easy to make the case that owning a home is more expensive than renting one over time. But it's also easy to make the case that homeownership is worth it despite the higher cost.

So if you're not sure whether to own or rent, consider all of these angles. Weigh the upside of stability and getting to call the shots against the downside of potentially paying more over time to come to your decision.

And consider the work involved, too. Maintaining a home doesn't just cost money. There's a time commitment as well. If you're willing to make it, homeownership could be for you. If not, renting might be your better option.