Here’s what most agents won’t tell you:

Buying isn’t always better.

There, I said it.

Yes, I’m in real estate. Yes, I help people buy homes. But let’s actually look at the full financial picture, because smart, confident decisions come from clarity, not hype. The goal is long-term wealth, and sometimes, the best path to that goal is not immediate homeownership.

When Renting Makes More Sense Statistically

In the current high-rate, high-cost market, renting often makes better financial sense in the short to medium term. Here are the key factors:

  • You’re Planning to Stay for Less than 5 Years: The break-even point—where the money lost on closing costs and agent fees is recouped through appreciation and loan paydown—is typically around 5 to 7 years. If you plan to move sooner, renting is almost always more economical.
  • The Total Cost Difference is Significant: Renting costs should be compared to the total cost of ownership (PITI: Principal, Interest, Taxes, and Insurance) plus an estimated 1-3% of the home’s value annually for maintenance and repairs. If your rent is significantly lower than this total figure, renting preserves capital.
  • Optimal Use of Capital: Your down payment and closing cost money might be better used elsewhere, such as investing in a high-yield asset, paying off high-interest debt (like credit cards or large student loans), or remaining liquid for a business opportunity.

When Owning Wins Long Term

Homeownership shifts from an expense to a powerful wealth-building vehicle the longer you stay put.

  • You Plan to Stay Put for 5 or More Years: This duration allows you to ride out short-term market fluctuations and amortize the high upfront costs, making appreciation and equity buildup the primary benefits.
  • You Want Fixed, Predictable Payments: Unlike rent, which typically rises year after year, a 30-year fixed-rate mortgage locks in your largest housing expense, protecting you from future inflation.
  • Building Intergenerational Wealth: Owning a home is one of the most reliable ways for most Americans to build net worth through mandatory loan paydown (principal) and property appreciation.

Real Talk: Beyond the Mortgage

Owning a home is not just about the mortgage payment. It includes taxes, insurance, unpredictable upkeep, and the opportunity cost of your down payment. Renting gives you flexibility and eliminates the headache of maintenance. Owning builds long-term wealth, stability, and control over your living space.

The right answer isn’t universal; it depends entirely on your season of life, financial readiness, and career trajectory.

If you’re unsure which path is right for you this year, let’s run the numbers together using your specific local market data. We can calculate your personal break-even point and make a decision based on clarity, not pressure.