Should You Rent or Buy a Home in Today’s Market? Here’s What You Need to Know

If you’ve been asking yourself, “Is it even worth trying to buy a home right now?”—you’re not alone.

With elevated home prices and persistent mortgage rates, many would-be buyers feel like renting is the safer, or even the only, option. And in some cases, it might be. But the key is understanding the long-term financial impact of renting versus owning a home—and how those decisions shape your future wealth.

Let’s break it down.

Renting Feels Safer Now—But It’s Costlier Over Time

Right now, renting might come with lower monthly costs, fewer responsibilities, and more flexibility. But there’s one thing it doesn’t do: help you build equity or long-term wealth.

According to a recent Bank of America survey, 70% of renters are concerned about how lifelong renting could impact their future finances. Their concerns are valid—because every rent check you write supports your landlord’s equity, not yours.

In fact, rents have increased over time just like home prices. Even though rent growth has slowed slightly in some cities, the overall historical trend is upward—and that trend makes it harder to save for a down payment or make long-term financial progress.

Why Buying a Home Builds Wealth and Stability

Homeownership is one of the most powerful tools for building wealth in America. Here's why:

• Appreciation: Home values tend to rise over time. Even during market corrections, the long-term trend for U.S. real estate is consistently upward.

• Equity: With every mortgage payment, you’re increasing your share of ownership in the property—a form of forced savings that grows your net worth.

• Stability: Fixed mortgage payments provide predictability, while rent is subject to increases with each lease renewal.

The numbers don’t lie. According to the Federal Reserve, the average homeowner’s net worth is nearly 40 times greater than the average renter’s. That’s generational wealth in the making.

As Forbes puts it:

“While renting might seem like the less stressful option, owning a home is still a cornerstone of the American dream and a proven strategy for building long-term wealth.”

Renting vs. Buying: You’re Still Paying a Mortgage—Just Not Yours

Let’s keep it real. Whether you rent or buy, you’re paying a mortgage. The only question is:
Whose mortgage are you paying?

When you rent, your payments help your landlord pay off their property. When you own, your payments go toward your asset. That makes all the difference over 5, 10, or 30 years.

Joel Berner, Senior Economist at Realtor.com, puts it best:

“It’s easier to keep renting than to take on the upfront costs of homeownership. But you have to consider the equity and generational wealth you build when you own. In the long run, buying may be the smarter investment—even if it’s harder upfront.”

Bottom Line: Renting May Be Comfortable—But It Doesn’t Build Your Future

If buying a home feels out of reach right now, you’re not alone. But don’t let temporary barriers keep you from making a plan.

Renting offers short-term flexibility—but it won’t help you build long-term wealth. That’s why it’s essential to create a path to ownership—even if you’re not ready to buy today.

Work with a trusted real estate agent to map out your goals, improve your financial readiness, and explore your buying power. The earlier you start planning, the sooner you can stop renting your future—and start owning it.

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