It’s the age-old question: should you buy a home or keep renting? With mortgage rates hovering in the 6–7% range and rent prices still climbing across much of the U.S., it’s a decision a lot of people are wrestling with right now.
The truth is, there’s no one-size-fits-all answer. Your lifestyle, financial goals, and timeline all play a role. But if we zoom out, buying almost always wins long-term—both for building wealth and for providing a sense of stability you just don’t get from renting. Let’s take a closer look here in this detailed review from HouseJet.
The Case for Renting
Renting isn’t always the wrong move. For some people, it’s exactly what makes sense in the short term.
- Flexibility: Renting makes it easy to move for a job, family, or just a change of scenery. You’re not tied down to selling a property before relocating.
- Lower upfront costs: Renters avoid the down payment, closing costs, and maintenance expenses that come with homeownership. That can free up money for other savings goals.
- Less responsibility: When the water heater breaks, the landlord handles it. You don’t have to budget for surprise repairs.
But here’s the drawback—rent doesn’t build wealth. You’re paying for a place to live, but you’re not building equity. And with rents up nearly 30% nationwide since 2019 (Apartment List), renters are spending more money than ever, often with little to nothing to show for it.
Real-life scenario: If you’re paying $2,000 a month in rent, that’s $24,000 a year. Over five years, you’ve spent $120,000—money that went straight into your landlord’s pocket. That same amount could have gone toward paying down your own mortgage. Tack on write offs for taxes and mortgage interest and the gap gets even bigger.
The Case for Buying
Buying a home is more of a commitment, but the benefits can be life-changing.
- Equity building: Every mortgage payment chips away at your loan and adds to your ownership stake. According to the Federal Reserve, the median net worth of homeowners is about 40 times greater than renters.
- Stability: With a fixed-rate mortgage, your housing payment is locked in. Renters face yearly increases, often with little warning.
- Tax advantages: Homeowners may qualify for deductions on mortgage interest and property taxes, which can save thousands annually.
- Appreciation: Historically, U.S. homes have appreciated about 4–5% per year on average. That means your home can gain value while you live in it.
As Mike Oddo, CEO of HouseJet, explains:
“Buying a home is almost always the better choice if it makes financial sense. You’re not just putting a roof over your head—you’re investing in your future and creating stability that renting simply can’t offer.”
Real-life scenario: Let’s go back to that $2,000 monthly budget. Instead of renting, imagine putting it toward a mortgage on a $300,000 home with a modest down payment. After five years, you could easily build more than $40,000 in equity—plus benefit from any home appreciation. That’s a huge difference compared to walking away with nothing after renting.
The Market Right Now
Yes, interest rates are higher than they were a few years ago. But rents are higher too, and they’re not likely to fall significantly anytime soon. According to Realtor.com, the median rent in the U.S. is still above $1,700 per month, and in many metro areas, it’s well over $2,000.
Meanwhile, buying locks in your monthly payment and starts you down the path to ownership. You can always refinance later if rates drop, but you can’t get back the rent money you’ve already paid.
So, Should You Rent or Buy?
If you need flexibility, don’t plan to stay in one place for more than a couple of years, or aren’t financially ready for a down payment, renting might still make sense.
But if you’re in a position to buy, even in today’s market, the benefits almost always outweigh the drawbacks. You’ll gain stability, start building equity, and set yourself up for a stronger financial future.
As HouseJet sees it, at the end of the day, renting is a short-term solution. Buying is a long-term investment in yourself and your family. And in today’s uncertain world, that kind of security is hard to beat.
Wally Bressler, Real Estate Industry Veteran and Market Expert
Contributing Writer from HouseJet
9/30/2025