You may have always heard that it’s smarter to buy a home than rent, but is this really the best choice for you? With skyrocketing housing prices, increasing interest rates, and limited housing inventory, home ownership may be out of reach for many Americans. Better yet, it just may not make the best sense financially depending on your situation. There are a host of reasons and circumstances where renting a home would be a wise option. So, if you are wondering whether or not you should rent a home, here are six signs that renting is the way to go.

1. You Plan to Move in a Couple of Years

On average it takes about five years to see return on your investment in a home, so if you are planning to move before that, you may want to consider renting. In addition to realtor’s commission, you can expect to pay transfer and capital gains taxes, escrow fees, and moving fees. Not to mention the additional cost of any improvements or repairs to your home. You want to be sure you will stay in the home long enough to get some equity out of it, so the single most important consideration is how long you plan to stay there.

2. You Can't Afford a Down Payment

Before you begin your home search, you need to assess whether or not you can afford a down payment. These days, if you put down less than 20%, it could end up costing you in the long run because you will be charged a higher interest rate. You will likely also end up paying mortgage insurance, a fee that could cost anywhere from $50-$500 a month. Furthermore, if you do end up needing to sell the home sooner than you thought, you may not have much equity in the home if you put down a smaller down payment.

3. You are Living Paycheck to Paycheck

Even if you make enough money each month to afford a monthly mortgage payment, that doesn’t necessarily mean you are financially ready to own a home. You need to consider all of the expenses that come with owning a home, including a mortgage, taxes and insurance, and other monthly expenses like utilities, internet, cable, and HOA fees. You should also plan for unexpected expenses such as repairs or home improvements. Ideally, you should also have an emergency savings in case something happens to your home or you unexpectedly lose your job.

4. The Housing Market is Inflated

In today’s real estate market, you are likely to show up at an open house only to find droves of other people who are eager to purchase a home. With such little inventory, the demand creates a hot market where you might be forced to make a snap decision. Not only that, but you might end up paying far more than the house is worth just to seal the deal. In these instances, you may be better off waiting and renting until the market cools off.

5. You Have a Lower Credit Score

Your credit score can impact your life in a number of ways, with one of the biggest being the interest rate you can get on a home. If you have a lower credit score, you can expect to pay at least 1-2% higher interest rates. This could tip the balance in the direction of renting rather than buying.

6. You Aren’t Ready for the Responsibility

Owning your own home may sound like a lot of fun, but it comes with a great deal of responsibility. Things like mowing the lawn, cleaning the gutters, dealing with plumbing issues, and having to schedule HVAC repairs can become quite daunting. When you are renting, you simply pick up the phone and call your landlord every time something goes wrong. If you’re an owner, you have to pay for repairs and perform the maintenance yourself. Upkeep is also expensive, so you need to consider that in your yearly expenses. If you aren’t quite ready for the time and money involved in home ownership, you may be better off renting.