Renting vs. Buying: Which Is Smarter Right Now?

With rising interest rates and unpredictable markets, many people are wondering: should I keep renting—or is it still smart to buy? The answer depends on your financial goals, lifestyle, and how long you plan to stay put. Let’s break it down.

🏠 The Case for Buying

Owning a home builds equity—and that’s a form of forced savings.

Pros of buying:

• Fixed monthly payments (if using a fixed-rate mortgage)
• Ability to build wealth through home appreciation
• Tax advantages (in some areas)
• Freedom to customize, renovate, and grow roots

💡 Tip: Over time, buying becomes more affordable than renting—especially in stable or appreciating markets.

🔑 When Buying Makes Sense

• You plan to stay in the home for 5+ years
• You’re financially stable with steady income
• You have enough savings for a down payment and closing costs
• You’re ready to take on maintenance responsibilities

Use the “rent vs. buy” breakeven calculator to estimate your timeline to equity.

🏘️ The Case for Renting

Renting can be a smart choice—especially if you value flexibility or need more time to save.

Pros of renting:

• Lower upfront costs
• No property tax, maintenance, or homeowner responsibilities
• Easier to relocate for work, lifestyle, or family
• No risk of home value decline

When renting makes sense:

• You're moving frequently or unsure of your location
• You’re rebuilding credit or saving for a stronger down payment
• The rental market is significantly cheaper than the buying market nearby

📉 Financial Comparison: Monthly Example

Scenario	Rent	Buy
Monthly payment	$1,800	$2,000 (PITI)
Annual rent increase	3–5% avg	Fixed (if locked)
Equity built	$0	~$5K–$10K/yr avg
Tax savings	$0	Possible
Maintenance	Included	Homeowner pays

After 5 years, the buyer typically comes out ahead—if the market holds steady.

🧠 Ask Yourself These Questions

• Do I plan to stay in this area for at least 3–5 years?
• Am I comfortable taking on homeownership responsibilities?
• Is my job and income stable?
• Do I have a cushion for repairs or emergencies?

If the answer is yes, buying may be worth it—even with higher rates.