Renting vs. Buying a Home: How to Decide

The myth that renting is "throwing money away"

Owning has its own non-recoverable costs: mortgage interest, property tax, insurance, maintenance, and closing costs. In the early years, much of a mortgage payment is interest, not equity. Renting can be the smarter financial choice in many situations.

The break-even horizon

Buying usually wins only if you stay long enough to offset the large upfront costs (down payment, closing costs) with equity and appreciation. That break-even point is often 5–7 years, depending on your market.

Beyond the math

• Buy if you value stability, plan to stay several years, and can afford the full cost comfortably.
• Rent if you need flexibility, expect to move, or prices in your area are far above rents.
• Don't forget maintenance and repairs — budget roughly 1% of the home's value per year.

Compare your options

Our Rent vs. Buy Calculator models both paths over your expected time horizon, and the Affordability Calculator shows what you could comfortably buy.