Renting can feel easier and less expensive. You pay your monthly bill and you do not worry about repairs, taxes, or mortgage rates. It feels simple and it feels flexible.
But there is one thing renting will never do for you. It does not build your financial future. Homeowners grow their net worth just by owning a home. That is why buying still matters, even in a market that feels complicated.
Renting vs owning in real life
When you rent, your money goes to your landlord and then it is gone.
When you own, part of your payment comes back to you as equity. Your home value grows over time, and your loan balance slowly goes down. This is how wealth builds in the background, month after month.
It may feel like renting is cheaper right now, but the long term cost is higher. You are not investing in your future.
First American studied the difference between renting and owning during four very different years.
2006.
2015.
2019.
2022.
These years included bubbles, normal markets, and high mortgage rates. In every single one, the results were the same. Renters lost money over time. Homeowners gained it.
Here is how it looks.
The solid lines show how a homeowner’s net worth grows the longer they stay in their home.
The dotted line shows the renter. Their money goes out, but nothing comes back.
Time in a home builds wealth. Time renting does not.
And the numbers stay the same even when you include expenses like taxes, insurance, and repairs. Owning still comes out ahead in every time frame First American studied.
What about affordability today
You may still feel that buying is out of reach. That feeling is real.
The past few years have been tough for buyers. But the market is starting to shift. Mortgage rates have eased, home prices are stabilizing, and incomes continue to rise. Zillow reports that typical monthly payments are slightly more manageable than this time last year.
It is not suddenly easy. But it is better than it was even a few months ago. And history shows that long term ownership is still one of the strongest ways to build real wealth.
Final thought
Renting may feel comfortable today, but owning is what builds financial security over time. And with affordability improving, your path to homeownership may be closer than it seems.
If you are curious what buying could look like for you, reach out anytime. I am happy to walk you through your options in a simple and pressure free way.
