There is no denying that home ownership can have its advantages: It helps build wealth through accumulated home equity and appreciation, provides tax benefits and offers a sense of autonomy. But sometimes remaining a renter-and roughly 30% of American households fall into this group-makes more sense, especially if you fit one or more of these categories:

1. Housing prices are rising much faster than rents in your area. When you factor in the after-tax cost of ownership, in some places it is better to rent than to buy. Although the gap is narrowing in most parts of the country, rents experienced slow growth compared to housing prices during the last several years. In many high-priced areas, it was far less expensive to rent than to buy the same single-family home after calculating average monthly payments. Rents have been moving up again.

2. You don't plan to stay long in one place. If you're likely to be peripatetic and moving within five years, you shouldn't buy a house unless, maybe, your company pays for the move. Five years is the minimum amount of time typically needed to recoup the initial purchasing costs and deal with housing-market fluctuations.

3. Your main motive for buying is long-term gain. If you're looking for the best return, you're often better off investing on Wall Street than Main Street. A study by the Fidelity Research Institute found that real estate produced returns above inflation of just 1.35% a year vs. 5.95% for stocks from the fourth quarter of 1963 through the third quarter of 2006. Renters can still invest in real estate without buying a home. There are real estate-related stocks and mutual funds, and real estate investment trusts (REITs), which are publicly traded companies with portfolios of commercial property.

4. You'd rather be traveling than fixing your toilet. Being king of the castle means added responsibilities that cut into free time. Most renters need only call their landlords if they have problems with leaky plumbing or broken furnaces, saving themselves time and money.

5. Your Finances are a little spotty. Buying a home means handling sizable expenses up front-such as the down payment and closing costs-even before you start making mortgage payments. And other costs-including maintenance, insurance and property taxes-can rise sharply each year. Many couples have decided to temporarily put off buying while they save up to have a decent down payment. This strategy might position them for a more favorable mortgage when they do buy.