Renting vs. Buying: What The Numbers Say

by Century 21 Affiliated

Renting often feels like the simpler move these days. There’s no down payment to save up for, no surprise repair bills, and no long-term commitment if life changes.

But then your lease renews and the rent jumps. Then it happens again. Eventually, what felt flexible suddenly starts to feel expensive, especially when you realize every monthly payment is going to your landlord, not building wealth for you.

A big reason this stings is because there’s been so much talk about how homeownership is “out of reach.” And in some markets, it absolutely can be. But here’s the part that doesn’t get said enough: when you compare the numbers side by side, buying can cost less per month than renting in more places than most people expect.

Buying Can Be More Affordable Than Renting in Many Areas

In a lot of markets today, owning a home may actually have a lower monthly cost than renting a 3-bedroom home. New data from ATTOM suggest this is true in nearly 58% of counties across the United States.

And this comparison isn’t just a mortgage payment versus rent. It also takes into account common ownership costs like insurance and regular maintenance.

So if you’ve assumed buying automatically means a higher monthly bill, it may be worth a second look. Recent changes in home price growth, housing inventory, and mortgage rates have been shaking certain markets. Depending on where you live, buying might be finally in your favor.

Affordability Depends on Where You Live

Even though the national picture has shifted, it doesn’t mean buying is cheaper everywhere, or that every renter will have the same experience.

That “nearly 58%” figure looks very different depending on the region. The biggest improvement is happening in the Midwest and South, while the West can still feel tight for many households.

The key takeaway is simple: real estate is local. A national headline can’t tell you what the rent-versus-buy equation looks like in your zip code. The only way to know is to run the numbers based on your local prices, rents, taxes, and insurance.

What’s Still Holding Buyers Back?

If you’re thinking, “Even if the monthly payment works, I can’t afford the upfront costs,” you’re not alone.

For many renters, the biggest hurdle isn’t the monthly payment. It’s the down payment (and often closing costs) that feels like a wall.

Here’s the good news: there are thousands of down payment assistance programs across the country, and many buyers qualify without realizing it. The average benefit is around $18,000, which can help cover part of your down payment or closing costs.

Support like this can make buying feel a lot more realistic, because it reduces how much cash you need to get in the door.

How to Figure Out What’s Right for You

If you want clarity instead of guesswork, focus on a simple comparison:

Your current rent (and how often it’s rising).
An estimated monthly ownership cost (mortgage, taxes, insurance, HOA if applicable).
A realistic maintenance cushion.
Upfront costs (and any down payment assistance you may qualify for).

When you combine potential assistance with monthly costs that may be closer than expected, the gap between renting and buying can shrink quickly, or even flip in favor of buying.

Conclusion

The bottom line isn’t that everyone should buy a home as soon as possible.

The idea is that renting isn’t always the cheaper option people assume it is, and buying may be more realistic than it feels once you look at the full picture.

If you’re renting and feel stuck saying “someday”, consider a quick conversation with a local real estate agent or lender. Not a commitment, just a way to see what’s possible and whether it makes sense for you.

Renting vs. Buying: Which Home Option Is Right for You?

by Century 21 Affiliated

Wooden blocks labeled BUY and RENT on either side of a stack of coins topped by a small house model with a speech bubble containing a question mark illustrating the decision between renting vs buying a house.

Between stubborn mortgage rates and rising home prices, you’ve probably mulled over renting vs. buying a home. In market conditions like these, renting and waiting to buy can feel like your only realistic option. This can be the truth in many cases, and buying before you’re ready can be a costly mistake.

But the short-term savings of renting can sometimes trap you in a cycle, preventing you from making wealth-building investments. Over time, this can actually end up costing you more than buying a home early and slowly building equity. Unsurprisingly, a recent survey from Bank of America found that 70% of prospective homebuyers feel renting could hinder their financial future.

Ultimately, the pros and cons of renting and buying come down to your own short-term and long-term financial goals. If you’re feeling torn over whether you should nest or invest, take these major differences into account to decide.

Homeownership Builds Your Wealth Over Time

Apart from giving you your own place to live, homeownership grants the important bonus of building your wealth over time. This is because home prices usually rise as time goes on, meaning waiting longer to buy costs you more. This isn’t always true of every housing market, but the general national trend tends to speak for itself.

A green bar graph showing the national average home sale price from 1988 to 2025.

The average home sale price has more than tripled in the past 30 years.

Even better, your home equity also grows over time when you’re a homeowner. Equity is the difference between what your home is worth and what you still owe on your mortgage. Your equity grows with each mortgage payment you make, and this builds your net worth over time.

According to the Federal Reserve, the average homeowner’s net worth is nearly 40 times greater than that of a renter. That’s a life-changing difference, and seeing it represented visually really drives the point home.

A bar graph demonstrating that the net worth of the average homeowner is about forty times more than the average renter.

The average net worth of a homeowner household is almost 40X greater than that of a renter household.

This massive difference in personal wealth is just one of the reasons that Forbes says:

“While renting might seem like [the] less stressful option . . . owning a home is still a cornerstone of the American dream and a proven strategy for building long-term wealth.”

Renting Helps You Save in the Short Term

Compared to homeownership, renting offers lower monthly payments and the freedoms of relatively negligible commitment and responsibility. This often makes renting feel like the safer option, and it usually is, at least in the short term. But in the long term, renting can land you in a trap that prevents you from building real wealth.

Rent tends to rise along with home prices, and this has been true for decades. Rental costs have been somewhat stable recently, but they almost never trend downward. This trap of paying increasing rent without building wealth can make buying a home feel impossible.

A bar graph showing the national median housing rental price yearly from 1988 to 2025 demonstrating the rise in the cost to rent.

Like home prices, rental costs have risen dramatically in the past several years.

Financial uncertainty like this can have a real, lasting impact on any of your financial decisions. In the same Bank of America survey, 72% of potential buyers said they worry rising rent could affect their current and long-term finances.

Rent money doesn’t come back to you, and that means it doesn’t grow your wealth. The only mortgage it’s paying is your landlord’s.

So, whether you’re renting or owning, you’re paying off a mortgage. The question is: whose mortgage do you want to pay?

Renting vs. Buying: What Really Matters

Here’s another way to look at renting vs. buying. Rent money is gone once you pay it. Payments toward your own house build equity, like a savings account you can live in. Obviously, buying comes with higher upfront costs and more long-term responsibility. But the reward is a stable investment that grows over time. And while buying a home often feels out of reach, a solid plan can get you there.

As Realtor.com Senior Economist Joel Berner explains:

“Households working on their budget will find it much easier to continue to rent than to go through the expenses of homeownership. However, they need to consider the equity and generational wealth they can build up by owning a home that they can’t by renting it. In the long run, buying a home may be a better investment even if the short-run costs seem prohibitive.”

Conclusion

Renting may be cheaper in the short term, but it can cost you more over time without building your wealth. If you’re weighing the pros and cons of renting vs. buying, consider your long-term financial goals. Short-term saving can trap you in an endless cycle of renting, but buying without planning can be financially overwhelming.

If you’re ready to make the leap from renting into buying a home, contact us today. We’d be happy to connect you with a local agent who can make your dreams a reality.